MUMBAI (Commoditiescontrol) – Soybean meal declined in the spot markets across the country during the week ended 18, February amid lackluster demand at higher level.
Soybean meal declined by Rs 400 to Rs 23,000 per metric tonne at the benchmark Indore market of Madhya Pradesh this week.
Price of broiler chicken in benchmark Delhi market gained by Rs 3 to Rs 83/kg during the week ended 18, February 2017.
The demand for broiler chicken is likely to decrease slowly in coming days as peak winter demand is over and from March to June the demand for broiler chicken will reduce by 10-15 percent as consumers don’t prefer to eat chicken during summer season which will reduce the demand of soymeal.
As of now poultry farmers are making profit of around five percent but as the demand will decrease in summer season prices may fall further which will reduce their profit margin and they won’t procure soymeal at higher level.
As the chicks price is trading at Rs 35 which is higher by around Rs 10 over last year same period which is forcing poultry farmers to place the chicks at lower rate so the demand for soymeal is also low.
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 $365 per tonne FAS Kandla Vs $394 Argentina CIF Rotterdam (Mar) as of February 18, 2017. The difference between the two origin is $29 per tonne.
India soymeal is in parity of $29 compared to Argentine soymeal but India FAS Kandla prices have fallen by around 15 dollars as the rupee has appreciated in recent times which is discouraging factor as far as soymeal exports are concerned.
CBOT Soymeal prices fell during the week amid speculation that crops in South America are getting bigger amid largely benevolent weather. Prices for the oilmeal have rallied since the start of that year, thanks to concerns that heavy rains and flooding had hurt soybean yields in Argentina. Now, market experts say wet weather benefited much of that country's crop, with many fields likely to deliver better-than-expected yields.
Soymeal is likely to trade range bound next week as demand from poultry feed manufacturer fades around Rs 23,500 - 23,700 per tonne as it will increase the input cost so poultry farmer may incur losses and availability of soymeal is good which will also weigh on prices at higher level but around Rs 22,500-22,700 per tonne poultry farmer are making profit of around five to ten percent coupled with improving exports at lower level which will provide support to prices.
(By Commoditiescontrol Bureau; +91-22-40015533)
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