May 10, 2012

India's soymeal prices up 75%

Amid lower production and on the back of higher exports, India's soymeal prices increased 75% to INR32,000 (US$595) per tonne in the past 20 days affecting the poultry industry.

Soymeal production in India declined due to shortage of availability of soy for crushing. According to the third advanced estimates the oilseeds production in India is expected to drop to 300.62 lakh tonnes in 2011-12 from 324.79 lakh tonnes in the previous year. The rising price of the commodity has affected the poultry industry in the country and forcing them to switch over to corn based feeds for poultry.

As per Soy Processors Association of India (SOPA) the soy meal export of India rose 10.7% in April 2012 to 336,000 tonnes compared to 303,000 tonnes same period last year. India exports soymeals mainly to Japan, Iran, Korea, and Vietnam and it is one of the most preferred live stock feed in the world.

In Inter Continental Exchange (ICE) soymeal for May delivery traded up US$0.004 to US$4.17 per bushel on May 9.