September 23, 2010

 

Indian soymeal export may rebound amid higher global demand

 

 

India's soymeal export may rebound to 4 million tonnes in the 2010-11 oil year starting next month on hopes of higher availability of soy and a rise in global demand, an industry body said.

 

India is the biggest supplier of soymeal in Asia. According to Indore-based Soy Processors Association (SOPA) co-ordinator Rajesh Agrawal, soymeal export may touch up to 3.5-4 million tonnes in the next oil year as supplies are expected to be better owing to improved soy crop condition and higher carry over stock.

 

In the current oil year ending this month, soymeal exports are estimated to drop by 22% at 2.8 million tonnes from 3.61 million tonnes in the previous year owing to lower crops, Agrawal said.

 

The oil year runs from October to September. Soymeal, used mainly as an animal feed, is obtained from crushing soy, which is an important source of protein.

 

Agrawal observed that the outbound shipments have been growing in the last few months and the trend may continue in the coming months.

 

According to SOPA, the supply of soy for crushing will increase as there would be a carry-over stock from 2009-10 of 5-6 million tonnes, and also the production from the new crops is expected to be better than last year. In 2009-10, soy output stood at 9.72 million tonnes.

 

Meanwhile, India's soymeal sales are also likely to double to around 300,000 tonnes in September from a month ago, as buyers snap up cargoes from the South Asian nation, offering competition to suppliers of US and South American meal.

 

Soy, the main summer-planted oilseed, is sown during the monsoon months of June and July and the crop starts arriving in the market by October.

 

In India, Madhya Pradesh, Maharashtra, Rajasthan and Andhra Pradesh are the major producers of soy. India exports soymeal to Southeast Asian countries, including Vietnam, Indonesia, China and South Korea.

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