February 10, 2014

India's soymeal exports down 19% in January

As high prices and tight supplies curbed demand, India's soymeal exports dropped more than 19% in January, down for a second straight month.

In February, India's overseas sales may drop again as traditional buyers in Southeast Asia look for cheaper alternatives, traders said.

India exported 364,443 tonnes of soymeal in January, down 19.3% from 451,314 tonnes in December and 44% below year-ago levels, the Mumbai-based Solvent Extractors' Association (SEA) said in a statement.

The average soymeal export price was at US$548 per tonne, free on board, in January against US$517 a year ago, the data showed.

Traders said domestic prices are higher due to poor supply of soy as growers held back good quality stocks expecting a further rise in local prices. Soy is crushed to produce edible oil and the animal feed.

India is now offering soymeal at around US$565 per tonne, but supplies from Brazil and Argentina are available for around US$480 per tonne, they added.

South American soymeal is cheaper as soy processing costs are lower there, while prices of Indian supplies have been driven up as rains at the start of the harvest season in October damaged the oilseed crop.

The top three buyers of Indian soymeal in January were Iran, South Korea and Thailand. Over the 10 months to January, India exported 2.4 million tonnes of soymeal, down 7% from a year ago, as sales to traditional destinations such as Vietnam, Japan and Indonesia dropped.

Iran imported nearly half of the soymeal quantity at 1.1 million tonnes over the period, the data showed. In January, Iran imported 161,175 tonnes of soymeal from India as against 134,748 tonnes in December. But India's near-monopoly in soymeal exports to Iran is set to end following Tehran's nuclear deal with the West which is expected to pave the way for rival suppliers to boost their trading with the Islamic Republic.

Total oilmeal exports by India fell to 425,650 tonnes in January, down 47% from a year ago.