India Soymeal Likely To Trade Rangebound Next Week

MUMBAI (Commoditiescontrol) – Soybean meal increased in the spot markets across the country during the week ended 25, March amid improving demand.

Soybean meal gained by Rs 500 to Rs 24,000 per metric tonne at the benchmark Indore market of Madhya Pradesh during the week.

Price of broiler chicken in benchmark Delhi market were steady at Rs 87/kg during the week ended 25, March 2017.

The demand for broiler chicken during the week plunged as temperatures are rising in northern part of India and consumers don’t prefer to eat chicken when weather is hot and humid.

As of now the poultry sector is making profit of around 10-15 percent on the sales of broiler chicken but as the soymeal price increases profit declines. Soymeal is the major input cost for poultry farmers.

Poultry farmers are reluctant to purchase soymeal at higher level as their profit margin reduces and on the other hand the availability of soymeal is good which is weighing on soymeal prices. Soymeal prices are likely to trade in the range of Rs 23,000-24,000 per tonne.

Plants are now having inventory of 2.5-3 lakh tones of soymeal which can easily meet the poultry demand of one month along with soymeal produced on day to day based crushing activity which is happening at average pace as the crushing margin is in disparity due to fall in soymeal prices.

The traders are upset with export demand which is not improving as per their expectation so the soymeal prices were trading lower throughout the week.

India at least need to export 3-4 lakh tonnes of soymeal for next five to six months then only it may offset bumper supply of raw material i.e. soybean.

India Soymeal is priced at $374 per tonne FAS Kandla Vs $372 Argentina CIF Rotterdam (Apr) as of March 25, 2017. The difference between the two origin is $2 per tonne.

India soymeal is in disparity of $2 compared to Argentina soymeal as the rupee has appreciated in recent times which is discouraging factor as far as soymeal exports are concerned.