June 17, 2008

 

India soymeal prices surge 13 percent on tight global supply

Soymeal prices in India have surged 13 percent in a month due to tightness in global supply and increased demand from South East Asian countries, a senior industry official said Tuesday (June 17, 2008).

 

As of Monday, soymeal prices for export were quoted at US$470 a tonne, FOB at Kandla port, up 13 percent from US$417/tonne a month ago and 81 percent from US$260/ton last year.

 

Soymeal is the main oilmeal exported from the country.

 

"Problems in Argentina between farmers and the government have affected the availability of soymeal from the country, in turn boosting exports from India," said D.R. Khalra, executive director of the Soybean Processors Association of India.

 

Argentina is the world's largest soymeal exporter.

 

The global supply situation has also worsened due to declining production prospects for grains and oilseeds in the US Midwest due to heavy rainfall and flooding in the past few weeks.

 

"These factors are likely to keep Indian soymeal prices in the range of US$460-US$480/ton until the new crop arrives in the country," he said.

 

Khalra projects India's soymeal exports to rise to 250,000 tonnes in June from 64,098 tonnes in the same month last year.

 

However, growth in exports is likely to slow in the next few months, compared with the first five months of 2008, as soy stocks are lower, industry officials said.

 

Last month, the country exported a little over 300,000 tonnes of soymeal.

 

Low soy stocks have led to the closure of several mills in the major producing province of Madhya Pradesh until the new crop starts arriving in local markets in October.

 

In India, the sowing of soy starts in June and the harvest is around October.