India rules out curbs on soy futures to lower prices

Asia's biggest soymeal exporter, India, has ruled out curbs on futures trading in the oilseed to cool prices and stop a decline in livestock feed shipments.

According to Forward Markets Commission chairman B.C. Khatua, India's soy processors and exporters want curbs on futures trading after meal exports slumped 41% in the three months through December on increased local oilseed prices. Prices rose after output declined in South America.

Soymeal prices gained 2.1% in Chicago last year, while beans gained 26% in India, making exports less competitive, according to the nation's soy processor association.

India may miss its target to export 4 million tonnes of soymeal in the year to September as farmers and traders hold back beans in anticipation of higher prices, the group said in November.

Regulators should increase the margin traders need to pay on soy futures and halt trading on Saturdays to align the local market with global exchanges and help cool prices, the Solvent Extractors Association of India said.

February-delivery soy futures on the National Commodity & Derivatives Exchange Ltd. in Mumbai fell 0.9% to Rs2,197 (US$47.71) per 100 kilogrammes earlier.