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Soybean Meal Update

posted Jan 19, 2011, 9:00 AM by NAVYUG Info
Lower soy meal price of India is likely to attract South East Asian countries to buy more meal to meet their demand. The spread between soy meal price of India and Latin America has been increasing. Indian prices are at discount of $40 per ton to Argentina. 

Robust oil meal export data is also likely to support the prices in the week ahead. According to the Solvent Extractors’ Association of India, soy meal export from India rose 86% Y/Y in December to 611,157 tons. During April-December, total soy meal export from India surged 55% Y/Y to 2.31 million tons. Indian traders are taking an advantage of likely crop loss in Argentina and exporting more meal to South East Asian countries. As such Indian crushers are likely to go for aggressive bean procurement on expectation on robust meal export enquiries for South East Asian countries. 

The much awaited USDA report was released on last Wednesday where world soybean production forecast was lowered. United States Department of Agriculture lowered world soybean production forecast to 255.53 million tons from 257.78 million tons projected in December. Major decline estimated for US and Argentina to 90.61 million tons and 50.50 million tons from 91.85 million tons and 52 million tons, respectively. US soybean ending stock is projected at 3.82 million tons against 4.49 million tons projected in December. Bad weather condition in Latin American countries has been affecting the yield levels. All this will give good support to Soy Meal prices in the coming weeks.