Thu Jul 30, 2009 2:53pm IST Email | Print | Share | Single Page [-] Text [+]
* India kicks off new soymeal export season
* Sells 77,000 T to South Korea in 2 deals
* More deals likely as Indian meal competitive (Recasts with quotes, details)
By Naveen Thukral
SINGAPORE, July 30 (Reuters) - India has started its new-crop soymeal marketing season with sale of around 77,000 tonnes to South Korea and more deals are likely on competitive offers from the South Asian nation. One deal of around 47,000 tonnes was signed this week, while 30,000 tonnes was contracted late last week for November and December shipments, regional traders said on Thursday.
"South Korea always buys early and more deals should happen as Indian meal is cheaper than South American meal," said a Singapore-based trading manager with an international trading company.
Indian soymeal was traded between $410 and $415 a tonne, including cost and freight to South Korea compared with meal from Latin America quoted around $420 and $425 C&F.
Traders said there was talk that India had sold another 10,000 to 20,000 tonnes of meal to buyers in Southeast Asia which could not be confirmed.
Indian traders, confirming the South Korean deals, said there was strong interest in Indian soymeal from other destinations such as Japan, Malaysia and Thailand.
"During the last one week some soymeal export deals have taken place and there is good interest from Japan and other Southeast Asian countries," said an Indore-based exporter.
India's soymeal export deals come at a time when traders are expecting a delay of at least two weeks in soybean arrivals on slow progress of the annual monsoon rains. Indian soymeal normally reaches buyers in Southeast Asia by mid-October.
Last month's scanty rains raised concerns that India's soybean output might get hit, but the government data showed oilseed sowing rose to almost last year's levels after the rains revived in the second week of July.
For the week ending July 17, India's oilseed area stood at 10.7 million hectares against 11.0 million hectares a year earlier, farm ministry data showed.
"If this year's crop size is around 9.5 million tonnes, then these are good deals," said a Mumbai-based trader with a global company, referring to South Korean purchases. "We need to see what would be the crop size".
India produced 17.9 million tonnes of summer-sown oilseed crops in 2008 with soybean contributing 55 percent of the total output.
"The standing soybean crop is in good condition. But rains in August and September would be extremely crucial for a healthy growth," said another trader from Indore, India's soybean hub in the central state of Madhya Pradesh.
India's soymeal exports in the year ending September 2009 may fall 35 percent to 3.2 million tonnes on a lower crush and sluggish overseas demand. The export sales were also subdued as farmers held back stocks in the face of lower prices.
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