October 10, 2007

 

Indian soymeal selling like hotcakes

 

 

India has contracted soymeal exports of up to 1.3 million tonnes from the new soy crop, harvests of which have just begun, trade officials told Reuters Tuesday.

 

South Korea, Japan, Vietnam and China account for the bulk of 700,000 to 800,000 while Indonesia, Thailand, Philippines and Malaysia accounted for the remainder, Davish Jain, chairman of the Central Organisation of Oil Industry and Trade, told Reuters.

 

The soy contracted was almost double the quantity contracted at this time a year ago.

 

Indian soymeal is fetching record prices and exports are being contracted at around US$335-340 per tonne free alongside ship, said Rajesh Agrawal, coordinator of the Indore-based Soy Processors' Association of India told Reuters, adding that it should now be stabilising at these levels.

 

Indian soymeal prices were seen around US$375-400 per tonne cost and freight to Southeast Asia for October and November deliveries.

 

This could go higher in December depending on the US soy harvest and state of South American plantings, he said.

 

Meanwhile, soy futures on the Chicago Board of Trade fell to a four-week low this week on reports of showers in dry soy areas of northern Brazil. Soymeal closed US$3.50 to US$5 per tonne lower, with December prices at US$260.50 per tonne.

 

Jain said traders were awaiting USDA crop data on Oct. 12.

 

Indian soymeal exports in the new season that began in October are expected to cross 4 million tonnes, up from 3.5 million tonnes in the year just ended.

 

While Indian soymeal from the new crop is available now, soymeal from South America would only be  available in February, offering India an advantage.

 

 The Soy Processors' Association of India has forecast a record 8.86 million tonnes of soy output this year due to higher acreage and favourable rains. If so, it would be a 24-percent increase over last year's 7.14 million  tonnes.

 

South Korea's Major Feedmill Group bought up to 45,000 tonnes of Indian soymeal from Cargill.

 

The purchase was split into three lots of up to 15,000 tonnes each for Jan. 30 and Feb. 15 arrivals. The soy was priced at US$399.50 per tonne, including cost and freight.

 

Traders expect orders from South Korea and China could come in with the end of holidays there.