Soymeal Exporters Hesitant On Contracts

This is despite prevailing high prices, traders said yesterday. The industry had set a goal of 4.5 million tonnes for soybean production in 1996/97 when sowing began in July, but traders expect output to be 20 per cent below target due to erratic weather in growing areas. India produced 4.45 million tonnes in 1995/96.

Sowings for 1996/97 were delayed by almost a month due to late rains in central India. Thereafter torrential rains washed away some of the new sowingsand replanting had to be done.

Despite offer of higher prices for the new season, contracts were few because Indian soymeal exporters are hesitant to sign any new contracts, said Davish Jain, chairman of Soybean Processors Association of India.

 

Traders said export contracts for only 20,000 tonnes of soymeal had been signed so far.

, against 75,000 tonnes at the same stage last year.

Contracts for soymeal yellow for the new season started from $238 per tonne f.a.s. (free alongside ship) and are presently quoted around $245-250, which was around $185-188 per tonne at the start of the season in 1995/96, said oilmeal trader Satyanarayan Saboo.

Soybean arrivals in the markets of central India, the hub of soy industry, were around 500 tonnes per day compared with 20,000 tonnes at the start of the season in November.

Industry officials said India's soymeal exports in 1995/96 were expected to be around 2.6 million tonnes, higher than an earlier estimate of 2.4 million.

However, traders said no estimates of soymeal exports in 1996/97 had been made.

Bulk soymeal yellow was quoted at $270-271 per tonne f.a.s., the same as last week.

Spot soybeans were quoted at Rs 11,800-12,100 per tonne, against Rs 8,700-8,800 during the peak season in November.

Soybeans in plant delivery condition ruled at Rs 12,200-12,500, against around Rs 9,300-9,400 in November.