India to set record in soymeal export

[anant1a]

India to set record in soymeal export


India is all set to export record quantity of soymeal this year after selling 2.5 million tonnes since October.

India, Asia’s biggest supplier of soymeal, is on way to set a record in this sector with the exports in all likelihood set to cross targets set by the industry.

A spokesman for the soybean-processing industry said the sales amount to more than half of the targeted exports of 4.5 million tonnes for the year through September 2008, as buyers including China seek supplies amid a global shortage.

India competes with Brazil and Argentina for soymeal sales to countries, including China, Vietnam, Indonesia and South Korea. Exporters are benefiting from prices, which gained 71 per cent in Chicago in the past year after US farmers planted the smallest acreage to soybeans in 12 years.

According to traders, Indian soymeal continues to be in great demand from buyers in China, Europe and Southeast Asia.

The country raised its export target from 4 million tonnes in September after the domestic crop forecast was raised to 9.45 million tonne from 8.87 million.

Soybeans are crushed into soymeal for animal feed and into soybean oil for cooking and alternative fuel.

On the Futures market, soybean on Wednesday extended a rally to the highest since 1973 on speculation that US demand for biofuel will surge.

The US senate passed a Bill last week that may boost use of alternative fuels such as ethanol and biodiesel.

Indian soymeal prices have almost doubled to around $400 a tonne, excluding freight costs, from a year earlier.

European traders have contracted to buy as much as 100,000 tonnes of Indian soymeal and Chinese firms are seeking more from India to take advantage of lower freight rates.