August 14, 2008

 

India's soy output may reach record on good rains, increased planting

 
 
India's soy output may reach a record next year after good monsoon showers improved prospects of a crop that has seen increased plantings, a processors group said.
 
Last season, Indian farmers harvested 9.99 million tonnes of soy according to Rajesh Agrawal, a spokesman for the Soy Processors Association of India.
 
Madhya Pradesh, which accounts for slightly half of India's soy production and Maharashtra, which accounts for a third, have both received favourable levels of rains recently.
 
India's record harvest will boost exports to Asian countries  which has seen increased demand for Indian soy.
 
Record prices of soy have encouraged plantings, which was expected to end this week.
 
Shipments will be more than the 5 million tons estimated for this year, Agrawal said.
 
India sells more than 70 percent of its animal feed output abroad, mostly in the form of soymeal.
 
Although demand looks good, prices may not. Soymeal futures on the CBOT have dropped about 20 percent since its July 3 record on expectations of bigger crops from China and the US.
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