Domestic soymeal prices have risen by Rs 500 a tonne since Tuesday on demand from exporters, firm overseas prices and limited supply, traders and market participants said. | |
| At the Indore market, soymeal prices were quoted at Rs 9,800-10,000 a tonne today, up Rs 300 from Wednesday's close. |
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| "There has been a rise in soymeal exports in last couple of days, which firmed up the market sentiment as the supply is limited because of low oilseed production," said the official of a major player in the industry. |
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| He expects soymeal prices to stay firm in the coming days if overseas markets remain supportive. |
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| "Soy complex on Chicago Board of Trade has firmed up since Friday as US Department of Agriculture lowered its 2006-07 (Oct-Sep) crop estimate, while other crops such as corn and grains are also steady, fuelling speculation that more and more farmers in the three main soy-growing nations "" the US, Brazil and Argentina "" might shift to corn and wheat in the next sowing season," he added. |
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| Industry players said India has entered into three big soymeal export obligations at good prices, which has also lifted the market sentiment. |
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| "We have entered into contracts for supply of three shipments of soymeal to Indonesia and the Philippines at a very good price of $272-$275 (carriage and freight, Kandla port)," said the official of another player in the industry. Each shipment consists of around 15,000-20,000 tonne soymeal. |
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| "Some traders are also purchasing soymeal directly from Indian markets and selling them internationally to cash in on the high prices, which is pulling up meal rates," said another trader. |
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| Industry players said India's local soymeal demand is also likely to improve in 2006-07 (Oct-Sep) because of economic growth. |
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| Though the demand for soybean has moved up in last few days, supply has not matched because farmers are holding on to their produce in anticipation of a further rise in prices. |
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