December 16, 2008
India Feed Weekly: Soy buyers back down from deals as prices fall (week ended Dec 13, 2008)
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Soymeal rates this week were around Rs. 13,125 per tonne in Kota market and traded at Delhi spot market at around Rs. 14,550 per tonne.
The prices of feed meals - rapeseed extraction, sunflower extraction and groundnut extractions were all traded at Rs. 11,410; Rs. 9,200 and Rs. 10,000 per tonne respectively.
Corn from Uttar Pradesh was traded at Rs. 8,250 per tonne and remains almost stagnant in Delhi markets.
Prices of pearl millet in Delhi moved up and traded at Rs. 7,350 per tonne.
In Delhi, prices of Ground Nut Extraction (GNE) 40 % and 45 %, were traded at Rs. 9,300 and Rs. 10,000 per tonne respectively.
Price of dry fodder settled at almost last fortnight's price of just Rs. 70 per tonne and traded at Rs. 3,570 per tonne.
Green fodder price was at Rs. 16,380 per tonne, climbing by Rs. 80 per tonne.
Some soymeal buyers from South Korea, Vietnam and Indonesia have backed down from earlier deals with India after prices fell, forcing exporters to re-negotiate contracts and offer cheaper rates, a leading seller said.
"Some major exporters have seen defaults by importers of Indian soymeal in Korea, Vietnam and Indonesia as prices have fallen sharply," K.N. Resources Private Limited, managing director, Vijay Shrishrimal said.
He said his firm signed its first export deal for the new season at US$464 at the end of September and the prices have since dived to US$290 per tonne.
"Obviously, a sharp fall in export prices is the reason behind defaults. Buyers also say liquidity crunch and local currency devaluation have hurt them," Shrishrimal added.
Haryana plans terminal market
The Haryana State Agricultural Marketing Board has decided to set up an export-oriented "terminal market" for trading different agricultural products near Ganaur, a sub-divisional town in Sonipat district.
A spokesman said the board will acquire 600 acres of land for it and its cost is likely to go up to Rs. 10,000 million.
Wheat prices are steady due to good demand amid low supply.
Soy prices are bearish on sluggish demand.
Mustard prices are steady to weak on subdued trading and steady arrivals. But speculation of low output due to diminished acreage may hike future prices.
Groundnut prices are steady to weak on low buying interest. Reduced Rabi acreage and disease infestation in Maharashtra and Gujarat in established crop may push prices soon.
Ground Nut Extraction (GNE) prices are seen to come down in another week as work in extraction plants starts.
US$1 = INR47.905 (Dec 16, 2008)
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