October 31, 2010

 

India earns contract to export one million tonnes of soymeal

 

 

India has been contracted to export one million tonnes of soymeal in the first quarter of the marketing year starting October, 18% more than a year ago, traders said on Friday (Oct 29).

 

India, Asia's top supplier of the animal feed, had sealed deals to export one million tonnes of soymeal to countries such as Japan, Vietnam, and Indonesia at US$380-US$420 per tonne free on board, traders said. "Indian supplies are selling at least US$10 cheaper than South American soy, spurring more deals this year," said Davish Jain, former head of the Central Organisation for Oils Industry and Trade.

 

Jain, who also heads Prestige Feed Mills Ltd, said Indian traders had struck export deals at US$390 per tonne in October last year.

 

The price gap between Indian and South American soymeal had narrowed to US$10 per tonne, down from US$20-US$30 per tonne in early October due to a rise in demand from the domestic poultry industry, he said.

 

"But still we will end up exporting more in 2010-11," Jain said. India exported 2.8 million tonnes of soymeal in 2009-10, down from 3.3 million tonnes in the previous year.

 

In 2009, the worst drought in 37 years cut India's output of soy, the main summer-sown oilseed, by 13.6% to 8.2 million tonnes, hitting soymeal exports.

 

"We are looking at an export of 3.5 million tonnes this year," said Rajesh Agrawal, coordinator of the Soybean Processors Association of India.

 

Earlier, traders were expecting exports to touch four million tonnes in 2010-11.

 

Jain said higher domestic soy output would help India export more soymeal than the quantity shipped out in 2009-10. Traders say the country's 2010 soy output is likely to be at 10.1 million tonnes, up 4.1% from a year earlier.

 

The country grows only one soy crop in a year, with planting in rainy months of June-July and harvests from October. Buyers in Japan, Vietnam and Indonesia prefer Indian soymeal, processed from non-genetically modified soy.

 

In September, soymeal exports from the country rose 69% to 290,868 tonnes from a year earlier due to higher demand from traditional buyers.