July 16, 2008

Oil World sees record Argentine soy stocks in June as exports fall

Argentine soy stocks at end-June 2008 rose to around record levels as crushings fell due to a dispute between the country's farmers and the government, Hamburg-based oilseeds analysts Oil World said on Tuesday (July 14, 2008).

Argentine soy stocks rose 800,000 tonnes on-year to 36 million tonnes, despite a smaller crop in 2008, Oil World estimated.

Argentine farmers staged a series of strikes and other protests in the last four months to protest against a new tax on soy exports aimed at reducing domestic prices.

The strikes almost paralysed soy crushings in the first ten days of June and forced a slowdown in crushings in April and May, Oil World said.

"The Argentine soy crush was at an estimated 8.8 million tonnes in April/June 2008, down by 0.9 million tonnes from a year earlier and contrary to earlier expectations of a sizeable increase," Oil World said.

It estimates Argentina's June 2008 soyoil exports fell to 400,000 tonnes from 640,000 tonnes in June 2007.

Oil World estimates Argentina's April/June 2008 soymeal exports dropped to 6.04 million tonnes from 7.07 million tonnes last year.

Argentina's June 2008 soy exports rose to 1.03 million tonnes from 0.77 million tonnes in June 2007 but the rise was considerably lower than previously expected, Oil World said.