July 8, 2014

India's June soymeal exports fall to record low

High prices dragged down India's soymeal exports to a record low, Reuters reported.

The country's exports of soymeal, an important feed ingredient, plunged 68% to 2,637 tonnes in June compared to May, the Solvent Extractors' Association of India (SEA) said.

Prices of Indian soymeal was US$100 to US$110 per tonne higher than South American supplies, which were at about US$490 per tonne.

"High prices of Indian soymeal due to poor availability of soybean caused the historic fall," said B.V. Mehta, executive director of SEA.

Traders said that in the coming month, tight supplies of soybeans in local markets would keep soymeal prices higher than those from other origins and would continue to drive away major importers, including Iran, Japan and Thailand.

Fortunately, India's oilmeal exports in June were propped up by strong demand for rapeseed meal from South Korea and Iran. Compared to May, rapeseed meal sales to these two markets rose by 20% to 193,313 tonnes in June, while total exports climbed by 3.3% to 99,054 tonnes.

India's exports of castormeal, which is used as an organic fertiliser, also soared 85.5% from May to 91,422 tonnes.

Due to high soymeal prices in the 2013/14 fiscal year that ended in March, the country's oilmeal exports slid by 10% on-year to 4.3 million tonnes.

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