The Hindu Business Line : Lower crushings hurt soyameal sales, exports

"Availability and sales of soyameal have been less so far this season in view of lower crushings. Merchant-exporters are trying to cover up for exports," said Mr Rajesh Agrawal, Chairman, Soyabean Processors Association of India.

The market seems to be improving with bean arrivals increasing on higher prices. "Prices of soyameal are higher in the domestic market in view of lower crushings. This is making up for lower exports," he said.

Domestic soyameal prices have increased to Rs 8,850 a tonne this week from Rs 8,100 last week. "Export prices too have improved from $180 a tonne f.a.s (free-alongside ship) to $195," he said.

"Domestic consumption, especially in the poultry sector, is good this season," he said.

However, Mr Agrawal said exports this fiscal would be lower than last year.

"Last year, we exported 34 lakh tonnes of soyameal. This year, it could be a shade lower than 25 lakh tonnes," he said.

Last fiscal was exceptional as soyabean processors, in particular, gained from a lower US crop that was hit due to drought. Rising freight prices, too, helped.

"Crushings are lower because of farmers' resistance. They are ready to sell at higher prices only," he said.

Thanks to last year's good prices, farmers are able to hold on to their produce this year. Currently, they are selling only when they are in need of cash, according to industry sources.

"This has resulted in the bean prices rising by at least Rs 1,000 a tonne this week to Rs 13,100-13,200," they said.

Asked about the recent purchase of soyameal by South-East Asia destinations, Mr Agrawal said South American meal was sold by Bunge to South Korea at $250 c&f.

On purchase of Indian meal by China, Mr Agrawal said: "Currently, there is not much of a purchase."

Mr Agrawal said arrivals were up on Wednesday, the first day of the markets opening after a week-long holidays. "Arrivals were around 3.5 lakh bags of 90-kg," he said.

The arrivals were encouraged by soyabean prices rising in the Chicago Board of Trade. "Prices in Chicago have increased by $10-12 a tonne during the last few days," he said.

While the beans for January delivery closed at $5.40-1/2 a bushel, up eight cents on Tuesday, soyameal for December delivery settled $2.70 higher at $156.40 a tonne.

The soya complex in the global markets has turned bullish on news that the Asian rust was spreading across Louisiana in the US and moving into Mississippi.

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