Argentina's Wheat Shipments Benefit From Closed Corn Registrations: In the near term, Argentina’s ports will handle a large flow of wheat exports as a result of the government's requirement that all sales be shipped within 90 days. Registrations reached 7 million tons at the beginning of December 2007 before the government closed registrations indefinitely to assess the condition of the current crop. Because of the time restriction on shipping registrations, wheat exports will reach levels of at least 2.3 million tons per month from December 2007 through February 2008. However, since corn registrations are currently closed, sufficient port capacity is available to handle the expected increased wheat export pace. Historical shipments of wheat, corn, and soybeans have been as high as 7 million tons, set in May of 2005. If the government opens and places time restrictions on corn and wheat registrations, then logistical constraints could follow, especially since soybeans ship during the same period.

Domestic: For December, wheat prices were mixed despite reports of Argentina’s decision to keep the export registry closed indefinitely, China’s export restrictions, Russia’s implementation of a 40 percent export tax effective at the end of January, and fresh tenders from Pakistan. For the month, Hard Red Winter (HRW) fell $17 per ton, Hard Red Spring (HRS) rose $8, Soft Red Winter (SRW) fell $20, and Soft White (SWW) rose $33.

• Pakistan is up 500,000 tons to 1.0 million on unfavorable weather in newly planted areas and unexpected strong demand.

• Ukraine is up 240,000 tons to 250,000 because of large shipments from Russia.