• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

M.R. Subramani

Soyameal prices, which were ruling at $210 f.o.b Kandla at the start of this month, are now quoted at $238-239.

Chennai , Oct. 21

RISING demand from South-East and Far-East Asian countries, particularly Japan and Korea, has resulted in soyameal prices increasing by over 10 per cent during the last fortnight.

This, in turn, has helped exporters from the country. Soyameal prices, which were ruling at $210 f.o.b at the start of this month, are now quoted at $238-239 f.o.b Kandla.

Oilmeal exports are seen rising this fiscal to over 35 lakh tonnes (lt) from 18.96 lt last fiscal on demand for compound feed as the global economy is showing signs of recovery. "There is all round demand for Indian soyameal from even countries such as China, Pakistan and Bangladesh particularly in view of the failure of the US soyabean crop," trade sources told Business Line.

On Monday, Sanwaria Agro Oil Ltd told the Bombay Stock Exchange that it had been awarded contracts to export soyameal/de-oiled cake worth $3.5 million.

When contacted, the company's official, Mr Anil Agarwal, said Sanwaria had got orders to ship 15,000 tonnes of soyameal at an average price of $225 per tonne f.o.b.

"Our consignments will go to Japan, South Korea, Indonesia, Vietnam, Pakistan and Bangladesh," he said. The company has entered into contracts with a Singapore firm to sell the consignments.

"Prices have now increased from $195-200 a tonne f.o.b witnessed a month ago as it is a game of supply and demand. C.i.f prices are around $265-270 a tonne now," he said. "Soyameal exports are likely to touch 20 lt."

Last fiscal, soyameal exports were 13.33 lt, down from 25.9 lt the previous year. Other trade sources are optimistic that soyameal exports could top 25 lakh tonnes going by the current demand, especially from China. Prices of soya complex, including beans and oil, have spurted with Chicago futures ruling near six-year highs.

Analysts feel that exporters could cash in on the current trend by booking forwards till January. "After that, everything will depend on South America crop that will begin arriving from February," the analysts said.

Signs of economic recovery have led to expectations that consumption of food items, especially poultry and meat, will rise. This has led to rise in demand for compound feed in which oilmeals are used. Oilmeals make up 20-25 per cent of compound feed. Production of compound feed in South-East and Far-East Asian countries is around 100 million tonnes.

With the soya crop being hit in the US, compound feed makers in these countries are increasingly looking towards Indian oilmeals to meet their demand as the prices are seen competitive besides saving on freight charges, which are also heading North currently.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Co-operatives seek level playing field

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line