September 23, 2013

India's soymeal export prices soar on strong rupee

As the rupee strengthened against the dollar, Indian soymeal export price this week has risen to US$515/tonne, free alongside ship, compared with US$500-US$505 last week, while rival South American soymeal values have eased following a decline in the US futures.

US soymeal futures slid more than 5% this week, tracking weakness in the soy market, which lost ground on forecasts for crop-friendly weather that is expected to aid the development of late-planted soy.

In nearly five weeks on Thursday (Sep 19), the Indian rupee hit its highest, as the US Federal Reserve's decision not to dial back its easy money policy is expected to provide a reprieve to the local central bank in its policy making. This has narrowed the spread between Indian and South American soymeal prices to around US$20/tonne from US$35/tonne last week.

Asian grain buyers are keeping a close watch on US corn and soy harvests, which are likely to influence prices. "People are looking at yields from early harvests and corn looks to be every good," the first Singapore trader said.