Process Management

News 139 views last update:6 Aug 2012

India sells soymeal at record prices

Indian exporters are signing fresh soymeal export contracts at record prices of $330-$340 per tonne, including cost and freight, to destinations in southeast Asia and China, a top trade official said on Friday.

"This is the highest-ever price for soymeal contracts," Davish Jain, chairman of Central Organisation of Oil Industry and Trade, told Reuters from Indore, the hub of the country's soybean trade. He said India had so far contracted to export close to 500,000 tonnes of soymeal from the new crop, harvest of which begins in October.

Rising demand in Southeast Asia could boost export contracts to almost one million tonnes by the end of September, he said, compared with contracts for around 300,000 tonnes at the same time last year. Jain said Indian soymeal was being currently quoted at $290-$300 per tonne free on board, against around $200 a year ago. "China has bought at levels of above $330 per tonne, including cost and freight," said Jain. "It is a real bull market."

More demand for animal feed
China is turning to nearby India for soymeal as record freight rates for dry cargoes are pushing up costs for soy imports from the United States, while demand for animal feed is picking up from the pig sector. Traders at a grains conference in Perth put Chinese soymeal buys from India at 50,000 tonnes, but Chinese industry officials said the country had booked 70,000-80,000 tonnes for shipment between October and November.

Source: Reuters

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