April 26, 2004

High Prices Affect Indian Soymeal Sales
 

Sales of soymeal in India have slackened in the past week as a result of high domestic soybean prices. This has made it unviable for processors to crush beans for exports.

Owing to bumper soybean crop of 6.85 million tons, India is likely to sell nearly 3.4 million tons of soymeal in Oct 2003 - Sep 2004 as compared to 1.4 million tons in Oct 2002 - Sep 2003. Soybean prices in the domestic market are currently quoted at Rs 18,700 per ton compared to the peak level of Rs 14,000 per ton in 2002 - 2003.
 
Prices are high, as most of the soybean crop has been sold out. Compared to high bean prices, Indian soymeal is likely to be sold at Rs 15,000 per ton free alongside ship in line with prevailing global prices.