August 15, 2007

Argentina's soyoil production transfers to US

With the current power shortages, Argentina has reduced soy crushings and has some soyoil export business transfer to the US, Hamburg-based oilseeds newsletter Oil World said.

Argentina has implemented some power saving measures which has restricted industrial electricity use, Oil World said.

The government indicated the power restrictions will soon end and if this is confirmed, Oil World predicts Argentina's soy and sunflower seed crushings would pick up sharply with its normal eight-hour operations.

However, the firm said, it is doubtful if energy restrictions would be lifted early or mid-September.

Export demand for Argentine soyoil remained strong, it said. China was believed to have purchased 70,000 to 100,000 of Argentine soyoil in past days for shipment in September 2007.