September 6, 2013

 

India's August soymeal exports rise on weak rupee, high Europe demand
 

 

Driven by weak rupee which made shipments more competitive as well as demand from Europe picked up, India's soymeal exports in August rose about three quarters from a month ago.

   

An increase in local supplies as farmers offloaded old stocks ahead of the new soy harvest also added to last month's exports from Asia's top soymeal exporter. Soy is crushed to produce vegetable oils and meal for animal feed.  

   

Overseas soymeal sales by India climbed to 183,555 tonnes in August, from 107,038 tonnes in July, data from the Solvent Extractors' Association (SEA) showed on Thursday (Aug 29).

   

"Improved demand from Iran and Europe and depreciation of the rupee boosted exports from India" said B.V. Mehta, SEA's executive director.

   

The average export price for soymeal was US$520/tonne in August versus US$571 in July, free on board, the SEA data showed.

   

Exports are expected to rise in the coming months as the soy harvest rolls in from October, boosting supplies and helping keep prices of Indian soymeal competitive in the global market, industry experts said.

   

Weakness in the Indian currency, which is down 20% against the dollar so far this year, should also continue to underpin overseas sales. India exported US$1.8 billion worth of oilmeal in the fiscal year ended March, Mehta said. The country's overall exports were US$450 billion for the period.

   

Iran, the biggest buyer of Indian soymeal since February, imported 106,031 tonnes in August as against 103,010 tonnes in July. Food purchases by Iran do not come under Western sanctions aimed at halting its disputed nuclear programme. 

   

Tehran has been finding it hard to pay for imports due to the sanctions but India, its second-biggest oil client after China, pays in rupees and these can be used by Iran to buy commodities such as rice and soymeal.

   

Iran is set to emerge as the no. one buyer of soymeal from India for a second straight year.

  

Europe's soymeal imports from India rose to 45,101 tonnes in August from 705 tonnes in July, while France that had bought nothing in July purchased 23,925 tonnes in August.

   

India's rapeseed meal exports in August rose to 90,735 tonnes from 40,902 tonnes a month ago. India's total oilmeal exports rose to 307,733 tonnes from 125,780 tonnes a year ago. Oilmeal exports in the 2012-13 fiscal year fell 14.3% from a year earlier to 4.8 million tonnes.

Video >

Follow Us

FacebookTwitterLinkedIn