April 27, 2011

US soy, soymeal exports to Southeast Asia ascend

US soy and soymeal cargoes to Southeast Asia are on the rise, as importers increasingly prefer to get shipments in small volumes and reduce costs, a senior industry executive said Tuesday (Apr 26).

A major shift in import trends in the region is taking place, with containers increasingly favored over bulk shipments, American Soybean Association-International Marketing Regional Director John A. Lindblom said.

He said close to 800,000 tonnes, or 35% of US soy exports to Southeast Asia last year, were in containers. Around 19% - or 450,000 tonnes - of US soymeal exports to the region were also in containers.

Lindblom said figures for this year are yet to be compiled, but the trend will likely continue.

Lindblom said that trade in containers has also helped importers establish direct contact with suppliers in the US, circumventing major grains trading companies.

He said importers believe another advantage of container shipments is that grain retains relatively higher quality if it doesn't have to pass through large elevators used to load bulk shipments.

With large volumes of clothing, furniture, shoes and electronic goods being exported from Indonesia, Vietnam and Malaysia to the US, "many of these container boxes are returning to the region with soybeans and soymeal," he said.

He said importers are also shifting their preferences towards container shipments as they don't have to tie up large amounts of capital for bulk cargoes of several thousand tonnes.

Last year, close to 30% of US soy exports to Indonesia were in containers, he said. Indonesia is the largest buyer of US soy in Southeast Asia. The US has close to a 90% share of Indonesia's soy import market.