December 23, 2010

 

Six Argentine soy crushing plants halted by strikes

 

 

A strike by soy-processing workers in Argentina's main grains port halted about six plants on Wednesday (Dec 22), threatening to disrupt crushing in the world's number one soyoil and meal exporter and helping lift US futures.

 

The plants in and around the port city of Rosario are still producing soyoil and soymeal destined for export markets such as China, but some of them are likely to run out of stocks soon, probably on Thursday (Dec 23).

 

However, talks were due to take place between the oilseed crushers' union and the government later on Wednesday (Dec 22), the day after unionists called an indefinite strike, and one union leader said a deal might be possible.

 

"I think we could reach an agreement today (Wednesday)," union leader Daniel Succi said, adding that strike leaders would meet with government officials on Wednesday (Dec 22).

 

"Workers are protesting at the plants," Succi said.

 

Six factories were completely halted by the one-day old strike, while four others are having trouble receiving soy supplies due to pickets by workers, industry sources in Rosario said.

 

Those 10 factories account for more than 50% of the soy-crushing capacity of Rosario, from where almost all the South American country's soy exports are shipped, the sources said.

 

Many of the world's biggest grains and oilseeds exporters have major operations in Rosario and companies including Cargill, Louis Dreyfus, and Bunge were being affected by the walkout over end-of-year bonuses.

 

A strike over safety conditions in soy-crushing plants earlier this month lasted less than a day.

 

Trade union leaders said on Tuesday (Dec 21) that workers were protesting over a one-off bonus of ARS5,000 (US$1,227) amid soaring inflation in Argentina.

 

US soy futures rose on Tuesday (Dec 21) on concerns that the lack of rains amid the La Nina weather event may affect output in Argentina, also gaining support from the strike.

 

Pay-related strikes could become more frequent early next year as union leaders and company bosses prepare for wage talks in March or April. Inflation is privately estimated at between 25%-30% in Argentina.