Soyameal Export Likely To Rise By 200,000 tonne in 2011-12
Date : September 2, 2011
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Riding on robust global demand and a good domestic soyabean crop, Soyameal Exports from India, Asia’s Largest Soyameal Supplier, are set to rise by at least 200,000 tonne in the marketing year starting October 1, according to industry experts.
The country is expected to ship at least 5 million tonne of soyameal in 2011-12, compared with around 4.8 million tonne in 2010-11, as says Co-ordinator of the Soyabean Processors Association of India. “Our prices are globally competitive and demand also looks strong. I expect Soyabean Crushing to go on well in 2011-12 as carryover stocks will be less than the 2010-11 level,” he said.
Soyabean planting has climbed by 11% this summer as against a year before on widespread monsoon showers, boosting hopes that the country will harvest a bumper crop in 2011-12, industry executives said.
Soyabean is crushed into soyameal for animal feed and into soyaoil for cooking and alternative fuel. Soyameal is added to poultry feed as a form of protein to boost the birds’ growth. The country typically exports around 70% of its annual production.
India competes with Brazil and Argentina for soyameal exports to countries including Japan, Vietnam, South Korea and China. However, Indian Soymeal suppliers have an edge over their South American rivals in terms of freight differential due to the country’s proximity with key buying nations, the executives said.
India Soyameal Exports bounced back in 2010-11 after a slump in the previous year due to less crushing of soyabean after a fall in its prices.
Shipments of the commodity nearly doubled to 3.73 million tonne between October 2010 and July 2011 as global prices picked up due to strong demand, improving sales realisation, according to the SOPA data. The data don’t include shipments to other Saarc nations.
Despite heavy rains in the key producing region of Central India, and sporadic incidents of pest attack on the crop, expectations are positive on a higher Soybean output. Overall crop size looks good despite 10% to 15% of the crop in some of these regions being affected.
Heavy showers lashed north-western as well as central regions in August this year to bridge the deficit until July, beating a government forecast of below-normal rains during the season that runs from June through September.
“You can’t expect 100% good monsoon rains over all the regions. Each year, some areas will be affected, and this is quite normal,” as mentions the co-ordinator.
The country harvested around 12.65 million tonne of Soybean in the last crop year through June, according to the government estimate.
Soyameal prices are ruling around $395 to $398 per tonne freight-on-board, which is globally competitive, he said, adding that good prices would lead to higher soybean crushing by the domestic industry.
India's Soymeals Traders are also looking to tap the growing demand from China by scaling up sales of oilmeals, mainly soyameal, to that country from the current level of 536,604 metric tonne, another industry executive said.
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