BUENOS AIRES (Dow Jones)--Soy prices in Argentina were unchanged on the week
at the Rosario Grain Exchange on Thursday, despite a strong recovery in
international soy prices after a dip early in the week due to fears that the
H1N1 virus, or swine flu, would cut back demand for pork and related
commodities.

  Farmers are concerned over new administrative requirements for conducting
sales due to the government taking over the management of grain transaction
registries that had previously been managed by privately owned exchanges.

  With it still unclear when actual payment will be received under the new
government management, farmers were hesitant to make sales, said Roagro analyst
Pedro Amuchastegui in a market note.

  In light volume, spot soybeans were traded for between 960 Argentine pesos
($258) and ARS970 ($260) per ton Thursday, unchanged from a week ago.

  May soybeans were priced at $260 per ton, unchanged from last Thursday.

  Soy prices are enjoying support from deteriorating prospects for Argentina's
2008-09 soy crop.

  The Buenos Aires Cereals Exchange slashed its forecast for 2008-09 soy
production by over 2 million metric tons Wednesday, pegging output at just 34
million tons.

  Despite the record area planted with the oilseed and early expectations for
up to 50 million tons, a brutal drought saw yields plummet. The exchange's
forecast marks the lowest soy output in four years.

   Wheat


  The exchange saw spot wheat sales start again after a long break. A local
miller paid ARS490 a ton on Thursday.  Before the sale, spot wheat hadn't been
traded in Rosario for over a month, when it sold for ARS460 per ton.

  With winter wheat planting starting, prospects for the new crop are dim.

  Argentina's 2009-10 wheat planting is expected to fall 18.6% on the year to
3.7 million hectares, the Buenos Aires Cereals Exchange said in its weekly crop
report Wednesday.

  Parched soil and tight financing are seen causing the drop, the exchange
said.

  The area planted with wheat is expected to be the lowest amount since
planting records have been kept in the country, the exchange said.

  Another poor wheat crop is likely to press the government to sharply cut back
wheat export permits next year and cause the largest buyer, Brazil, to again
look to North American or Eastern European markets to satisfy its demand.

  During the 2008-09 season, Argentina's wheat production plunged to 8.3
million tons, the lowest output in 27 years, as farmers cut back on planted
area and a brutal drought battered the crop.

  With domestic demand pegged at 7 million tons a year, Argentina will likely
have very little, if any, surplus wheat to contribute to international markets
next year.

   Corn


  Exporters bought spot corn for ARS390 and ARS400, compared with ARS380 a week
ago.