January 10, 2007

Thailand to increase import of Argentine soymeal

Thai soymeal importers could buy more of Argentine soymeal for February shipment if the price drops, traders said.

Argentine high-protein soymeal was purchased at US$ 270 a tonne, cost-and-freight (C&F) for February shipment, as buyers bid at below US$ 265.

The price of Indian soymeal was US$ 255 a tonne, C&F for February shipment.

Thailand's Betagro feedmill purchased around 24,000 tonnes of Argentine soymeal from the Cargill trading house at US$ 268-268.50 a tonne, C&F for February shipment, traders said.

About 8,000 tonnes of Argentine soymeal was also purchased by the Thai Feedstuff Users Promotion Association which incidentally bought 8,000 tonnes of Argentine low-protein soymeal from Cargill at US$ 255 a tonne, C&F. The body represents Thai soybean and soymeal importers.

Besides, soymeal imports increased to 2.2 million tonnes in 2006, up from 1.84 million tonnes in 2005, according to figures from traders.

Soybean imports however declined to 1.36 million tonnes down from 1.56 million tonnes in the previous year as two soybean crushers suspended operations on low crushing margins.

US firms Bunge and Cargill accounted for a 33 percent share of the Thai soymeal market in 2006 followed by Noble (12 percent) and Louis Dreyfus (7 percent).