April 23, 2008

EU buys soymeal from India on South American delays

EU buyers have shifted purchase of around 70,000 to 100,000 tonnes of soymeal from India after disruptions erupted in South America, Hamburg analyst Oil World said.

The analyst explained that the tight shipments from South America in March and April resulted in scant supplies in many soymeal-importing countries, including the EU.

Oil World added that large portion of the EU import would be shipped to France.

The additional demand, the analyst said, will raise Indian exports of soymeal beyond expectations.

Oil World projects Argentina's soy crushings to fall to only 40 percent of capacity in March.

The stalemate in talks between Argentine farmers and their government could lead to further interruptions to Argentine crushings in May, the report said.

Although large South American soy supplies are available, an enforced slowing down would significantly tighten world market supplies of soy oil and soymeal, Oil World explained.