Post by p knight on Mar 22, 2012 7:01:32 GMT -5
Argentine grains truck strike goes into 4th day
Wed Mar 21, 2012 10:32pm EDT
* Transportation halt supports Chicago grains prices
* Truck owners started strike on Monday over tariffs
* Most of Argentina's grains crops taken to port by truck
* Protest disrupts transport as soy, corn harvests pick up
By Hugh Bronstein
BUENOS AIRES, March 21 (Reuters) - Argentina's striking
truck drivers will keep their rigs parked for a fourth straight
day on Thursday, as concern grows that the protest could slow
soy exports from one of the world's key suppliers.
Growers in Argentina's Pampas grains belt have begun
collecting this season's crops. But millions of tonnes of
soybeans and corn will be stranded without the trucks needed to
haul the crop to grains terminals that dot the country's rivers
and serve as the gateway to the world market.
A prolonged protest by truckers over haulage tariffs could
delay shipments from the world's No. 1 exporter of soyoil, used
for cooking and in the booming biofuels sector, and soymeal,
used as animal feed.
The South American country is also the world's No. 3 soybean
exporter and No. 2 in corn after the United States.
"We are far from reaching an agreement," said Valeria Pardo,
a negotiator for the FETRA trucking federation that is leading
the strike. Talks with government officials would resume on
Thursday, she said.
Few rigs have arrived at Argentina's main grains hub of
Rosario this week, a fact that supported Wednesday's rebound in
U.S. soybean prices as rumors swirled of strong Chinese buying.
"I think the Argentine truck strike is getting some
publicity," said Mike Zuzolo with Global Commodity Analytics in
Lafayette, Indiana. "If the South American supplies are not
available for increased purchases by China, that suggests you
want to keep some premium for beans."
Soybean prices edged slightly higher in early Asian trade on
Thursday.
The government expects the soy harvest to come in at 43.5
million to 45 million tonnes. The corn crop is forecast by the
government at 21 million to 22 million tonnes, with both crops
hit by drought in December and January that reduced yields.Grains exporters with operations in Argentina include
Cargill, Bunge, Molinos Rio de la Plata
, Noble and Louis Dreyfus.
The truckers accuse the government of failing to implement
a guaranteed minimum hauling tariff that was agreed to after a
strike in October.
Work stoppages are common in Argentina as unions demand pay
rises in line with double-digit inflation. But the truckers'
strike comes at a difficult time for farmers recovering from the
severe dry spell.
This is also a tough period for President Cristina
Fernandez, as fallout from the lackluster world economy forces
her government to cut some of the subsidies and social spending
that helped set the stage for her 2011 re-election landslide.
Her popularity rating has sunk to the low 40s as Argentina's
economy, which boomed during most of her first term, slows down.