Indian Soymeal Contracts Firm On Good Harvest

Soymeal yellow was quoted around $275-276 per tonne yesterday, down from last weeks $280 per tonne FAS for November, December and January shipments. Soymeal for current shipments was quoted at $280 per tonne. Industry officials expect the 1996/97 (November-October) crop to be around 4.4 million tonnes compared with earlier projections of 4.0 million and 4.2 million in the previous year.

Traders discounted rumours in various Asian markets that Indian soymeal exporters were cancelling forward contracts due to an anticipated fall in yields.

There is no chance of any cancellation of contracts made by Indian exporters, due to a good soybean crop this year, said Sunil Saboo of S S Merchantile, a leading oilmeal trader. Traders said India had contracted to export nearly 480,000 tonnes of soymeal for November-January shipments.

 

Two Singapore based companies, Peter Cremer and G. Premjee, had contracted for 150,000 tonnes and 40,000 tonnes of soymeal exports respectively.

Cargill Hong Kong had bought 50,000 tonnes, while another Hong Kong based company, Concordia, had signed deals for 60,000 tonnes. Germanys Toeffer International had contracted for 90,000 tonnes, traders said.

The details for the remaining 90,000 tonnes of soymeal contracts were not available.

The main Indian sellers were OILFED, MMTC, State Trading Corporation, Prestige Foods Ltd, Gujarat Ambuja Protien Ltd and Ruchi Soya Industries.

Around 2,000 tonnes a day of soybeans from the new crop had started arriving in the markets of central India. Traders said the crop was delayed by nearly 15 days due to late monsoon rains which had put off sowing. Soybeans in plant delivery condition were quoted at Rs 11,250 per tonne, after around Rs 8,900-9,100 at the start of the season last November.