If I'm not mistaken, the use of LOAD DATA INFILE (or oracle "sqlldr") is only suitable for doing insertions to a table -- it doesn't do updates. (But maybe I'm mistaken?)
In any case, since the OP is clearly talking about UPDATE, I think the "REPLACE" keyword would definitely not be good, unless the input to the process was in fact a complete set of replacement records for the table. And even then it might still be a really bad idea, if the table involves autoincrement primary keys that are involved in foreign key relations elsewhere. (Because reloading the whole table is apt to assign a completely different set of autoincrement keys.) Again, if I am wrong, I'd love to know...
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