Chinese soyoil importers are asking Argentine exporters not to send shipments of the oil that had been bought before Beijing started imposing a new import standard, traders in Buenos Aires said on Wednesday.

Chinese authorities have denied the new rules were imposed in retaliation for Argentina's decision to restrict some Chinese imports, such as shoes and steel pipes, to protect local industry during the global economic crisis.

The disruption to exports is raising concern in Argentina because it threatens a key source of hard currency.
"Most of the shipments are being delayed ... We had one boat that was due in the coming days and they told us not to load it. Even if you say (it meets the new standard), the answer is 'no,'" said one trader at a leading grains exporter in Argentina, the world's top soyoil supplier.

The conflict has pressured local soyoil prices, which have fallen $22 per tonne since the trade spat flared some two weeks ago, according to traders. Soyoil closed at $824 per tonne, according to the government's official FOB price.

"This problem isn't getting sorted out. Most of the shipments are being put back," said another trader at a leading exporter.

China’s Chamber of Commerce told a conference of traders on March 31 the solvent residues used for processing soybean oil should not exceed 100 parts per million, whereas the solvent residue level in soybean oil imported from Argentina is about 300 ppm.

Argentine officials said on Tuesday talks to resolve the spat were progressing, adding that many exporters would be able to meet the tough new import rule.

Other crushers are evaluating the cost of modifying processing procedure to meet the demands from China, its top customer, the agriculture minister said.

Argentina exported 1.84 million tonnes of soyoil to China last year, bringing in $1.4 billion and accounting for 77 percent of Chinese soyoil imports.