November 17, 2003

Japan Likely to Gobble Up More India Soymeal; Result of Tight Supply in China

Japan will likely gobble up more Indian soymeal for November shipment onwards amid tight supply and higher offers by China due to increasing domestic demand by the Chinese, traders said today.

Offers for Indian soymeal were indicated at about $300 per ton for C&F Japan, or about $15 a ton less than those for Chinese soymeal, said a trader with a major importer in Tokyo.

"We see domestic importers seeking more Indian soymeal later this year and early next year due to its lower price and the tight Chinese supply," he said.

In the first nine months of this year, Japan imported 798,000 tons of soymeal. Of these, 410,000 tons were from China, 267,000 tons from the United States and 64,000 tons from India.

This compared with total 696,000 tons in the same period last year - 460,000 tons from China, 155,000 tons from the United States and 58,000 tons from India.

Japan imports about 1.0 million-1.1 million tons of soymeal for animal feed each year.