April 9, 2008

US soy exports to remain strong on long-term impact of Argentina strike

Soy exports from the US are expected to stay strong in the coming months, boosted by the long-term effects of the recent Argentina farm strikes, Hamburg-based oilseeds analyst, Oil World, reported Tuesday.

The report said that the US would have to satisfy a relatively large share of world demand in the near term since shipments from South America will remain far below potential in March/April 2008.

This trend has been due to the slow movement of soy in Argentina, despite the suspension of the farmer strike.

Oil World estimated that the US soy exports may have reached around 3.2 million tonnes in March, up sharply from 2.3 million tonnes the year before.

In March/August 2008, the US is predicted to export 8.83 million tonnes of soy, higher than previous expectations but still down from the 9.74 million tonnes in the same year-ago period.

Argentina is expected to have very reserved sellers in the next 30 days, hoping that negotiations with the government will result in a lowering of export taxes for soy and products.

The report pointed that this may slow the recovery of Argentine soybean crushings and exports.