March 6, 2012 / 2:48 PM / 7 years ago

UPDATE 2-Argentine dock strike halts scores of grains ships

* Dockers union says strike continues, Rosario hit
    * But effects muted by slow shipping season
    * Union demands fuller staffing of work shifts
    * Argentina a top world supplier of soy, corn

    By Hugh Bronstein	
    BUENOS AIRES, March 6 (Reuters) - Scores of grains
ships sat idle outside Argentina's ports on Tuesday as the
country's dockers union and port managers' chamber sparred over
a strike that threatened to disrupt key soy exports.	
    Agricultural powerhouse Argentina is prone to labor disputes
such as the walkout called by dockworkers on Thursday.	
    The CAPYM port chamber said the strike was suspended the
next day, but union chief Omar Suarez said on Tuesday that the
work stoppage continued uninterrupted.	
    Roughly 150 ships were forced to drop anchor and wait for
the protest to end before they could be moored and loaded,
Suarez added, paralyzing operations in Argentina's main grains
shipping hub of Rosario.	
    "Not one ship more will enter or leave," Suarez said. "There
could be about 150 ships halted."	
    The union chief added, "This is the continuation of the
strike that started last week. The strike did not end on Friday.
It continues in all ports."	
    The union, known by its Spanish acronym SOMU, demands that
work shifts be better staffed. No negotiation sessions were set
for Tuesday and without a deal between the dockers and their
bosses, Suarez said the work stoppage will go on indefinitely.	
    Argentina is a huge exporter of soy, a key source of protein
for an increasingly hungry world, and farm sector revenue is
important to the government's fiscal health. So port strikes in
the South American country are followed by international grains
traders and sovereign bondholders alike.	
    The work stoppage fueled a rise in Chicago Board of Trade
soy futures on Tuesday. At 12:30 p.m. CST (1830 GMT), CBOT May
soybeans were up 7 cents at $13.32 per  bushel.	
    A CAPYM port chamber spokesman declined to say how many
ships were being held up by the work stoppage. He insisted that
the dockers, despite their own denials, ended the strike on
Friday and then restarted it late on Monday.	
    "The dockworkers, who are represented by SOMU, worked the
weekend until 5 p.m. on Monday," the spokesman said.	
    Argentina is the world's biggest exporter of soymeal, which
is used as animal feed, and soyoil, used for cooking and in the
booming biofuels sector. The Latin American country is also the
No. 3 supplier of soybeans and a major corn exporter.	
    As global population grows to an estimated 9 billion by
2050, demand for food will nearly double, according to the
United Nations.	
    Argentina, with its vast and fertile Pampas,   will be
important in meeting that demand. 	
    But the country is prone to jarring labor protests. Hefty
wage demands, traditionally negotiated in March and April, are
common as annual inflation is reported by private economists at
more than 20 percent per year, one of the world's highest rates.
    Some unions have close ties to the government of President
Cristina Fernandez, who was elected to a second term last year
despite regular spats with farmers and orthodox economists who
say her state-centric policies scare off investment.	
    A grains export company executive said that this is not a
busy time of year for Argentine ports, as corn and soy
harvesting are just getting underway. Pressure on shipping has
also been lowered due to a smaller-than-expected corn crop,
after fields were hit by drought during the dog days of the
Southern Hemisphere summer in December and early January.	
    "This is usually a quiet period for the traffic of grains
vessels, plus the corn crop was lousy," said the executive, who
asked not to be named.	
    Government officials initially estimated a 2011/12 corn crop
of up to 30 million tonnes, but have since slashed that
projection to 20.5 million to 22 million tonnes.	
    The government forecast soy output at between 43.5 million
and 45 million tonnes. 	
    "Normally dockworker strikes come later in the year, May or
June, in order to give the unions more pull," the executive
added. "So the outcome of this one should be gentler for the
exporters than last years' wage increases of 35 to 40 percent."
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