June 4, 2005

India increases soymeal exports with improving international soy prices

India's soymeal exports have started picking up after a two-month lull because of strengthened international prices and especially good demand from Japan.

India usually rounds up most of its soymeal sales by May and June but it has done less business this year because of a smaller crop, and higher domestic prices that was driven by surging demand from the poultry industry. Soymeal sales are expected to fall to 1.8 million tonnes in the year to September 2005 from 3.2 million tonnes last year.

Sales in May totaled 155,000 tonnes compared with 112,000 tonnes in April, and June performance is expected to be between 100,000 to 150,000 tonnes versus 64,000 tonnes in the same month last year.

Japan was the biggest buyer in May taking some 45,000 tonnes of Indian meal. Indian trading companies have struck deals to supply 50,000 tonnes in June at around US$260 to US$265 a tonne with cost and freight. Though Japan is in some long-term deals with South America, it has turned to India for more immediate buying needs.