The Argentine oilseed workers federation continued its more than two week-old strike, interrupting agricultural exports with no sign that a wage deal might be reached in the short term. Contract talks between workers and export companies have broken down over compensation packages, amid Argentina’s high inflation.
There are reportedly 100-130 vessels waiting to load soybeans and products. Disruptions to Argentine shipments leave the United States as the origin of choice for exportable products. Argentina is the No. 1 exporter of soymeal which is used for livestock feed. The country also exports corn, wheat, and soybean oil.
Concerns about Argentine export constraints have added to bullish sentiment on CBOT soybean meal futures. Prices are also finding support from elevated concerns on Brazil’s soybean production.
With soybean meal and soybean oil facilities idled by the strike, there haven’t been any trucks hauling soybeans to the Rosario terminals, the main grain exporting hub of Argentina. Origin switching will be closely monitored in Wednesday’s USDA weekly export sales report (rescheduled due to the Christmas Holiday) to see if a pickup in US sales has occurred, as importers grow wary of available supply.
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