March 28, 2008

Argentina strike delays soy oil shipments to South Korea

The farm strikes in Argentina have delayed March shipments of soy oil bound to South Korea by at least a month, two Korean buyers said.

Heo Dong Wook, team leader at the management planning department of Dongnam Oil & Fats Co., said that the loading has been delayed and there are no words yet from the suppliers about rescheduling details.

An official from Ottogi Corp. also said that the shipments have been put off for one or two months now.

Chicago soy gained 12 percent in the past three days, the biggest gain in more than eight years, driven by Argentine protests.

The protestors blocked the shipment of 1.5 million tonnes of cereals and oilseeds, said CIARA-CEC, a group representing grain exporters in Argentina.

Heo said that if the protests last longer, his company may switch to alternative ports such as Brazil.

Dongnam Oil, based in Busan, imports soy oil mostly to sell to domestic cooking oil makers.

Last year, the company imported about 200,000 tonnes of soy oil.

Some 20,000 tonnes of soy oil was scheduled for shipment from Argentina in March, Heo added.

Argentina exported 204,186 tonnes of soy oil to South Korea last year, 67 percent of the nation's imports, according to the Korea International Trade Association.