Soymeal exports likely to touch 2 mt on higher output, demand

Supported by the record high crop of about 11 million tonnes (mt), soymeal exports from India is likely to touch 2 mt on strong overseas demand and favourable pricing situation, experts noted.

In a latest estimates, the Solvent Extractors Association of India (SEA) has put India’s soymeal production at 11 mt reflected in the increased crushing activities.

Atul Chaturvedi, President of SEA stated, “soymeal crop, which was struggling for the past two years has re-bounded with vengeance and most likely to touch the magical figure of 11 mt. Exports of Soymeal are also looking up. We should not be too surprised if our exports cross 2 mt in Soymeal during the current oil year.”

The previous forecast of soymeal crop was put at 10.6 mt, same as last year. Robust international and domestic demand pulled up the soymeal prices in the spot market to a recent high of ₹3,146 per quintal in the Indore market, which was last seen on October 10.

Soymeal futures on the National Commodity and Derivatives Exchange (NCDEX) fell by close to 1 per cent on Thursday to quote at ₹24,960 per quintal.

In the international market, Indian Soymeal quoted at $360 per tonne, lower by $2-3 from the Argentina-produced Soymeal.

“The higher prices in the domestic market is a bit difficult for exports. But what we see price increase is almost in tandem with international prices.

“Indian markets have moved similar with Chicago market. Further, there is good demand in the local market both for feed and food,” said Davish Jain, chairman, soymeal Processors Association of India (SOPA). International prices are mainly supported by the floods in Argentina, a major soymeal grower.

Commenting on the last week’s visit of SEA delegation to Argentina to study the soymeal complex, Chaturvedi maintained that close interaction were held with the Senior Officials of their Government, Commodity Exchanges, Trade Associations as well as leading manufacturers and suppliers of soymeal oil.

“The floods in Argentina has opened vast opportunity for Indian Soymeal exporters. Last year we had exported about 1.5 lakh tonnes during November-October 2016. However, the exact crop scenario will be clear in the second quarter,” said a leading Soymeal exporter.

Soymeal exports had turned unviable for the Indian exporters due to disparity in the international and domestic prices. A fall in the soymeal output had adversely affected the prices thereby drastically bringing down the exports by 93 per cent from the five-year average export of 4 million during 2009-10 to 2013-14.

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