MUMBAI (Commodities control) – Soybean meal traded higher in the spot markets across the country during the week ended 22 April to gain by Rs 600 per metric tonne to trade at Rs 25,500.
Earlier, crushers had slowed down the crushing operations due to lower beans availability in the market yards and negative crush margins. Also, farmers were looking forward for better prices of beans for which they were not ready to sell at the then prevailing low levels, thus impacting the overall production cycle of Soybean meal.
In order to meet the domestic and international demand of soymeal, along with viable crush margins, crushers have started offering higher price to farmers for beans, to continue the production.
In the month of March, crushers offered Rs 2950 – Rs 2975 / 100 kg as a buying price which failed to attract farmers to sell in large quantities in the market yards. However, this month crushers were forced to offer better price so that they can build up some inventory to fulfil the demand for the end products, thereby increasing the prices to Rs 3025 – 3100 / 100 Kg.
The end users demand – from the poultry industry & exports market is the key driving factors.
Poultry industry is facing a turbulent time as demand for Broilers have plunged in last couple of weeks on rising temperatures in Northern India, shifting the consumer’s preferences. Price of broiler chicken in benchmark Delhi market declined by Rs 4 at Rs 86/kg during the week ended 22, April 2017 with a total loss of more than 5%.
Exports of soymeal has shown good growth, but still much lower than market expectations. Indian Soymeal is priced at $415 per tonne FAS Kandla Vs $365 Argentina CIF Rotterdam (May) as of April 22, 2017 with a USD 50 disparity.
(By Commoditiescontrol Bureau; +91-22-40015533)
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