India Soymeal To Trade Steady To Higher Next Week

MUMBAI (Commoditiescontrol) – Soybean meal traded higher in the spot markets across the country during the week ended 15, April amid lower supply.

Soybean meal gained by Rs 700 at Rs 24,900 per metric tonne at the benchmark Indore market of Madhya Pradesh during the week.

A trader from Indore said soymeal prices have rallied as the stock of soymeal with plants have reduced drastically due to poor crushing in last one month.

He noted stock of soybean with processors which they procured during October to December period is very less and current supply of soybean in market yards is less as farmers are not getting desired prices so processors are not able to purchase soybean in bulk quantities.

So to procure soybean, processors have to bid higher so that farmer can liquidate the stock but procuring soybean at higher level increases the crushing disparity.

During the the march month processors in Madhya pradesh were procuring soybean in the range of Rs 2950-2975/100kg but they were able to purchase soybean in very low quantity due to slow farmer selling.

In April month soybean processors have started procuring soybean in the range of Rs 3,025-3,075/100kg and as farmers are willing to sell soybean above Rs 3,000/100kg they are able to procure soybean in good quantity.

To keep the crushing disparity at minimum level soybean processors are quoting the rates of soymeal higher. As of now the crushing disparity is in the range of Rs 400-500 per tonne but quoting soymeal at Rs 24,500 per tonne and soybean at Rs 3,075 /100kg crushing disparity widens to Rs 800-900 per tonne which is not viable for crusher.

Price of broiler chicken in benchmark Delhi market declined by Rs 10 at Rs 86/kg during the week ended 15, April 2017 on subdued demand.

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.

Poultry farmers are now incurring loss of around five percent on sale of broiler chicken.

As the chick cost has increased so placement of the chick will be less in coming days due to which poultry farmers will purchase soymeal as per requirement.

Exports of soymeal has shown good growth, but still much lower than market expectations, which is weighing on soybean prices in the domestic market.

India Soymeal is priced at $403 per tonne FAS Kandla Vs $370 Argentina CIF Rotterdam (Apr) as of April 15, 2017. The difference between the two origin is $35 per tonne.

India soymeal is in disparity of $33 compared with Argentine soymeal and the parity has been drastically reduced in last two month from a high of $40 due to appreciation of Rupee and trade experts believe that India soymeal should be in parity of at least $10 then only overseas buyer will buy soymeal from India.

Soymeal is likely to trade steady to higher on lower supply.