August 3, 2007

India to export record soymeal volumes on high prices

India is seen to export record volumes of the soymeal animal feed next year after farmers planted more soy to benefit from high prices for the commodity and its products.

Asia's biggest exporter of soymeal is seen to ship the projected 3.7 million tonnes starting November and may likely exceed last year's record of 4 million tonnes, according to Rajesh Agrawal, a spokesman for the Soybean Processors' Association of India.

Higher Indian exports may pose competition for the US and Latin American countries who regularly supply soy meal in Japan, South Korea and Thailand. India traditionally exports the soy product to Southeast Asian countries and may begin shipping to Europe this year if the bloc bans imports of genetically modified crops, Agrawal said. India's soybean meal is biotech-free.

Kim Chi Young, purchasing team manager at the Korea Feed Association said more options is good for traders because they can diversify sources. However, he quickly adds that it would depend upon the price, including freight costs. Some Indian traders have sold about 50,000 tonnes of soymeal from the new crop at prices ranging from US$290 to US$295 a tonne for delivery in November and December to Southeast Asian countries. The price, including freight costs, compared with between US$230 and US$235 a tonne a year earlier, Agrawal said.

In its latest tender, the Korea Feed Association bought soymeal from South America for arrival by Oct. 11 at US$299 a tonne, including freight costs, Kim said.

Indian farmers have planted an estimated 7.8 million hectares (19 million acres) of soy, 6 percent more than a year ago, according to the farm ministry.

Soymeal, India's largest meal export, is added to poultry feed as a form of protein to aid birds' growth. The country usually exports more than 70 percent of its output on low freight costs to Asian markets. India is the second-biggest importer of soybean oil, used mainly for cooking, after China.