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  • BCR Markets Monthly Newsletter / July 2017

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    The content can be reproduced as long as is cited as BCR Markets Monthly/Mmm-Yyyy.

    MFGR Rosario Cash Grain Market

    July Grain Markets Review

    ROFEX Rosario Futures & Securities Market

    Agro Derivatives Statistical

    Report

    Financial Derivatives Statistical

    Report

    MAV Argentina Securities Market

    Deferred Payment Checks and

    Repo Market Summary for July

    2017

    July Securities Issuances at

    MAV

    ROSGAN Rosario Cash Livestock Market

    Rosgan July Auction: Season

    ending auction features price

    support

    Markets

    ROFEX

    MAV

    ROSGAN

    RSGM

    mailto:iyee@bcr.com.ar?subject=Informativo Semanalhttp://www.rofex.com.ar/https://twitter.com/ROFEXcierrehttps://www.facebook.com/ROFEX1909/http://www.mervaros.com.ar/https://mobile.twitter.com/MERVAROS_MVRhttps://twitter.com/rosgan_bcrhttps://www.facebook.com/rosgan.bcr/http://twitter.com/BCRmercadoshttp://www.facebook.com/BCRoficial/

  • BCR Markets Monthly Newsletter / July 2017

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    July Grain Markets Review

    Thanks to a weaker peso, soybean prices at Rosario Spot Grain Market maintained a healthy upward trend throughout most of July, particularly during the second half of the month. Overall, reference prices ended the month with an ARS 520 per ton increase, closing the month at ARS 4,400 (or about USD 250) per ton.

    While soybean farmer selling remains below previous years pace, the gap has been significantly during July as a result of higher prices. As of July 26, purchases by crushers and exporters equaled 21.7 MT and 8.5 MT respectively (for 30.2 MT); whereas last years total purchases had reached 31.6 MT as of this time of the year.

    Corn traded range wise throughout the month, even in spite of support from a weaker domestic currency. Reference prices for cash corn rose ARS 90 per ton (about 3,8%) during July, closing at ARS 2,400 (or USD 136.8) per ton.

    Corn purchases have increased at an above average rate during July, widening the gap with historical levels. As of July 26, sales of corn totaled about 20 MT, around 3.1 MT more than the average for the past five years and 4 MT more than at the same height of the 2015/16 marketing year. This total includes 17 MT of purchases by exporters and 3 MT of purchases by the crushing industry.

    mailto:iyee@bcr.com.ar?subject=Informativo Semanal

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    As was the case with soybeans, cash wheat prices rose steadily in July. Reference prices ended the month with an ARS 200 per ton (+9.4%) increase, closing at ARS 2,900 (or USD 165) per ton.

    Wheat farmer selling has not fallen off during July. Total purchases by exporters and mills for the current marketing year amount to 11.4 MT and 3.7 MT respectively. As a result, total purchases are 6.5 MT above last year and 5.5 MT above the five-year average.

    For more information regarding Rosarios Grain Spot Market, please contact iyee@bcr.com.ar or visit the Rosarios Grain Spot Market webpage.

    AGRO DERIVATIVES Statistical Report

    Commodity Derivatives Totals

    In July, the number of commodity derivatives contracts traded on the Rosario Futures Exchange (ROFEX), which includes Chicago Soybean, Chicago Corn, Gold and Crude Oil CME Licensed Futures, plus Rosario referenced agricultural contracts (Rosario Soybean Index contracts, Soybean, Wheat and Corn Futures with Physical Delivery in Rosario), was 84.577 contracts, -3% MoM and -18% YoY. Nonetheless, the average daily volume (ADV) climbed 3% compared to the previous month and +22% YoY. The turnover in agricultural derivatives, reached an ADV of 26,687 metric tons (2,396 contracts). This represented an increase of 28% MoM and +7% YoY.

    mailto:iyee@bcr.com.ar?subject=Informativo Semanalmailto:iyee@bcr.com.arhttp://www.bcr.com.ar/Pages/Granos/default.aspx

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    Crude Oil Futures traded an ADV of 1,402 contracts, -3% MoM and +71% YoY. Gold futures and options traded 230 contracts in average, +16% MoM and 58% YoY.

    Source: ROFEX Research. Futures vs. Options Volume

    The agricultural futures volume in July was 464.030 metric tons, +22% MoM and +84% YoY. While agricultural options volume reached to 96,390 metric tons. This represents a +68% MoM but -61% YoY. As a result, options market share in agricultural derivatives climbed to 17.2% in July.

    Source: ROFEX Research.

    Volume by Product

    In July, the most traded agricultural derivatives were Rosaf Soybean Index (ISR) and Soybean Crushing Condition (SOF) futures, with 209,280 and 129,510 metric tons respectively.

    Source: ROFEX Research. Open Interest

    The agricultural open interest (OI) averaged 299.911 metric tons per day during July, -72% MoM and -41% YoY. Futures outstanding positions averaged 202,055 metric tons, while options outstanding positions averaged 97,856 metric tons. Gold Futures and options OI averaged 1.685 contracts in July. This represents a +103% MoM but -91% YoY. Oil WTI Futures OI averaged 3,347 contracts, -45% MoM and +23% YoY. Glossary SOY: Chicago Soybean Futures CRN: Chicago Corn Futures SOJ: Soybean Export Condition Futures SOF: Soybean Crushing Condition Futures ISR: Rosario Soybean Index Futures TRI: Wheat Futures MAI: Corn Futures

    mailto:iyee@bcr.com.ar?subject=Informativo Semanal

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    FINANCIAL DERIVATIVES Statistical Report

    Financial Derivatives Totals

    In July, the total number of financial derivatives traded on the Rosario Futures Exchange (ROFEX), which includes futures and options of FX; Public Bonds, Equity index and LEBAC futures; was 12.08 million contracts, -0.5% compared to the last month and +56 YoY. Nonetheless, the average daily volume (ADV) climbed 48.6% YoY to 575 thousand contracts. This represented the fourth month with greater volume on financial derivatives. The open interest (OI) had a daily average of 2.54 million contracts during July. This represents a fall of 3.7% MoM and +5.7% YoY.

    Source: ROFEX Research.

    US Dollar Futures

    The total FX derivatives markets (ROFEX, MATBA and OCT MAE) traded USD 12,552 million in July, -3% MoM and +27% YoY.

    Source: ROFEX Research.

    Concerning US dollar futures in ROFEX (whose contract size are USD 1,000, and is cash settled by the BCRA A3500 communication), a total of USD 12,038 million were negotiated in July (-0.5% MoM and +56% YoY). This represented 96% of the total volume traded in the US dollar derivatives markets. Merval Index Futures

    Merval Index Futures volume climbed to 36,325 contracts. It became the highest month volume since the contract was listed. The ADV was 1,730 contracts, +2% MoM and +370% YoY. The OI averaged 3,557 contracts in July, -22% MoM and +128% YoY. LEBAC Futures

    The Central Bank Bills (Letras del Banco Central, LEBACs) are short-term securities issued, at a discount, by the Argentine Republic Central Bank (Banco Central de la Repblica Argentina, BCRA) from March 2002. They are employed by the monetary authority as a monetary policy instrument to control the working capital and interest rates.

    mailto:iyee@bcr.com.ar?subject=Informativo Semanal

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    In the LEBAC futures contracts in pesos, the underlying asset shall be the Central Bank Bills whose remaining term at the futures contract expiration date shall be one (1), two (2) and three (3) months. The price agreed in the transaction reflects the interest rate for an investment between the future contract expiration date and the expiration date of the bill obtained because of the cancellation of such a contract.

    Source: ROFEX Research.

    In July LEBAC futures volume reached $ 590 million and the OI averaged $ 96 million. Public Bonds Futures

    Public Bonds Futures in ROFEX (which currently includes Bonar 2024 and DICA), traded 3,004 contracts in the seventh month of the year. It represents -46% MoM and YoY. The OI averaged 113 contracts in July, -77% MoM and -87% YoY.

    Source: ROFEX Research.

    For a higher level of disaggregation of statistical information write to investigacion@rofex.com.ar or visit the Centro de Estadsticas de Mercado of ROFEX.

    Director: Marcelo Gastn Comisso // Owner: Mercado a Trmino de Rosario SA // Legal Address: Paraguay 777, piso 15, Rosario, Santa Fe // DNDA record: 5172012 // Edition number: 1 // Exclusively online edition. // Copyright 2016 ROFEX Mercado a Trmino de Rosario S.A. All rights reserved

    mailto:iyee@bcr.com.ar?subject=Informativo Semanalmailto:investigacion@rofex.com.arhttp://www.rofex.com.ar/cem/

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    Deferred Payment Checks and Repo

    Market Summary for July 2017

    Deferred Payment Checks (DPCs)

    Trading in deferred payment checks (DPCs) in Mercado Argentino de Valores (MAV) fell somewhat sharply during July 2017. During the four-week period