November 7, 2012

As fresh supplies rolled in and competitive prices attracted demand, India's October soymeal exports jumped more than seven fold from a month earlier, when they hit their lowest level in at least two years.

India, Asia's leading supplier of soymeal, exported 49,840 tonnes of the animal feed in October, compared with 6,525 tonnes in the previous month, industry body the Solvent Extractors' Association (SEA) of India said in a statement.

But export sales were down 78% from a year earlier. The soy harvest is currently underway and supplies have been increasing in the spot markets with around 700,000-800,000 bags (about 100 kilogrammes each) arriving daily at markets across India.

"October soymeal exports have revived because of new arrivals. We had a tough supply situation in July-September, now in coming months we could see more improvement as supplies would pick up," said B.V. Mehta, SEA's executive director.

India's soy production in 2012-13 is likely to rise to 12.67 million tonnes, compared with 11.65 million tonnes in the previous year according to the Soybean Processors Association of India (SOPA). Soys are crushed to produce vegetable oils and meal for animal feed.

Traders and industry officials expect soymeal exports to rise in coming months as increasing supplies from the new crop, after poor availability in July-September, boost crushing operations.

South Korea's largest feed maker Nonghyup Feed Inc (NOFI) has purchased 30,000 tonnes of soymeal to be sourced from India in a tender for the same volume which closed on November 1.

SOPA on Monday (Nov 5) had estimated soymeal exports in October at 51,050 tonnes. Competitive prices for Indian soymeal, which is being offered at discounts of around US$10-15 per tonne compared with supplies from Brazil, Argentina and the US, have also boosted export demand.

India's total oilmeal exports fell 66% to 121,919 tonnes in October from a year earlier. South Korea, Vietnam and Japan were the top three buyers of Indian oilmeal in October, the data showed.

Exports of rapeseed meal dropped 57% to 39,058 tonnes in October from a year earlier. Oilmeal exports between April and October fell 30% to 1.7 million tonnes.