News

June 23, 2008

That Was The Week That Was: The Biofuels Squeeze Is Still On In Corn And Soya

By Sally White

Just one piece of good news came for the grain and vegetable oil complex last week – it seems that Argentina’s farmers are about to end the strike which for three months has been blocking both domestic and international trade in a wide range of products, but especially in soya and grains. Otherwise a combination of yet another new high for crude oil and devastatingly wet weather in the US grain-growing areas, were bullish news for prices and speculators. US corn and soya prices rose close to record levels.

However, markets are prepared for the Argentine strike to resume. The farmers' decision to end the protest came after President Cristina Fernandez said the contentious export tax increases would be sent to Congress for debate. The government says it needs to raise taxes to tackle inflation and improve help for the poor. But some farmers fear Congress will merely rubber stamp the tax policy, and are ready to resume their protest.

The lack of Argentine soya has caused a world...