March 28, 2008

Japan soy markets see no direct impact from Argentina strike

Japan soy markets are least likely to be affected by the farmers' strike in Argentina, local industry players said Thursday.

A Japanese trader said that he has not heard of any firm in the country purchasing soy from Argentina this year.

The strike, which seems to be extending indefinitely, has driven US soy futures to new highs.

Japan traders said the strike my impact the country indirectly though as the supply and demand for soy tighten in the global market.

Majority of Japan's soy imports come from the US at around 4 million tonnes.

The country also purchases some soy from Brazil, the second largest exporter in the global market.

Japan purchases very limited amount of oilseed from Argentina, the third leading supplier of soy.

In 2007, Japan purchased 21,000 tonnes of soy from Argentina, accounting for about 0.5 percent of the total imports.

Some traders said that Argentina soy quality has fallen short of buyer standards last year.