March 25, 2009

Prices of India's soymeal exports have climbed about 10 percent since late last year, with the commodity fetching a premium globally ahead of a new crop from rival South American producers Brazil and Argentina, a top industry official said late Sunday (March 22).

Prices are now ranging between US$420 and US$440 a tonne, Davish Jain, president of the Central Organisation for Oil Industry and Trade, told Dow Jones Newswires on the sidelines of an industry conference.

"The volume won't be too large, but it will be good money for the exporters," Jain said.

However, he said monthly soymeal export volumes are likely to drop by 50 percent starting in April to an average of 175,000 tonnes a month because fresh global supplies are expected from next month.

India exports soymeal to Vietnam, Japan, South Korea, Indonesia, Thailand and China. Soymeal exports in fiscal 2008-09, which ends in March, are estimated at 4 million tonnes compared with actual exports a year earlier of 3.9 million tonnes.

India's rapeseed meal exports are likely rise to about 1 million tonnes in 2009-10 as the rapeseed crop is expected to increase.

Exports weakened in 2008-09 due to a sharp fall in production, Jain said. India shipped out 757,860 tonnes of rapeseed meal from April-February compared with 796,702 tonnes a year earlier.

India's rapeseed production is expected to rise to 6.6 million tonnes in the crop year ending Oct. 31 from 4.6 million tonnes last year because of favourable weather conditions in the largest producing state of Rajasthan.

Export contracts of rapeseed meal are being signed at about US$195-US$200/tonne free-on-board, Jain said.