October 31, 2007

Iran to buy Argentine soy, products after a four-year halt

Iran is expected to increase purchases of Argentine soy, soyoil and soymeal after a four-year interruption, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.

Iran has resumed buying Argentine oilseeds and vegetable oils in August after the interruption caused by a diplomatic dispute. Iran in past years has transferred soy and soyoil purchases to Brazil and sunflower oil buying to Ukraine and Russia.

But comparatively low domestic stocks and rising demand have led to large-scale Iranian purchases in Argentina recently, according Oil World said. The purchases were concentrated on soy and products.

Oil World assumes that in March/September 2008 Iran will import Argentine sunoil due to the sharply lower production and export supplies of Ukraine and Russia."

It estimated Argentina would export 138,000 tonnes of soy to Iran in August/October 2007, the first sales in three years.

In September, for the first time in three years, Argentina made soymeal exports to Iran of 30,000 tonnes.

Oil World estimates record shipments of Argentine soyoil to Iran of 175,000 tonnes in October following 32,000 tonnes in the preceding month.

This and the larger than expected Brazilian soyoil exports in September and October will boost combined South American soyoil exports to Iran to a record level, the analyst said.