Soymeal prices to rise further on weak supply

KOLKATA: Soymeal prices in India are likely to rise further on weak supply. Crushing plants are sitting on low inventory because farmers and traders are holding on to their stock of soybeans in anticipation of further rise in prices. In the last two months, soymeal prices have risen by 20% to Rs 35,000 per tonne on ex-Indore basis as against Rs 29,000 per tonne during early February.

"Iran is dependent on Indian soymeal and has been buying despite Indian meal being more expensive compared to other origins. This is due to trade restrictions and forex issues that Iran faces." said Mr Raju Choksi, vice-president (agro-commodities), Anil Nutrients Ltd Mr Choksi added that a rush of buying from domestic feed industry is adding further fuel to the fire as it has been caught on wrong foot with low inventory of feedstuff.

As per the data by Solvent Extractors Association of India (SEA), soymeal exports in January and February have risen by 47% to 12 lakh tonnes against 8.2 lakh tonnes in the corresponding period of last year. At current rates, Indian soymeal is more expensive than South American origin cargo by a very wide margin and hence not workable in other export markets, said Mr Choksi. "What little cargo is available is being sold to local feed and poultry industries," he said.