25 Jul, 2013
KOLKATA: Soymeal prices in India are likely to come under pressure following higher acreage and lower exports demand. As on July 18, soybean acreage stood at 110 lakh hectares across India as against 86.2 lakh hectares last year, according to data from Solvent Extractors Association of India.
"Soymeal price has been on the decline since May 2013 as exports demand dropped, thereby increasing domestic supply. With monsoons above normal in key soybean areas and acreage higher compared to last two years, the prices are likely to remain subdued. We believe, the price could well drop below Rs. 28,000 per tonne on ex-Indore basis," said Mr Raju Choksi, Vice President (Agro Commodities), Anil Nutrients Ltd.
As per data from Solvent Extractors Association, soymeal exports during April-June 2013 period fell by almost 36% at 4.1 lakh tonnes as against 6.37 lakh tonnes in the corresponding period of last year. The data showed exports to Iran, the biggest importer of soymeal from India, fell by around 13% for the period under consideration.
According to the fourth advanced estimates released by the government on Monday, the soybean crop size was 146.8 lakh tonnes in 2012-13 against 122.14 lakh tonnes in 2011-12. "With higher acreage this year, we believe the crop size could well be close to 160 lakh tonnes or around 10% higher than last year. This would easily put pressure on prices in 2013-14, if exports don't pick up as they did in the last quarter of 2012-13," said Mr Choksi.
Soymeal for new season is being traded at $455 per tonne for delivery during November/December. This is against $545 per tonne for ready delivery.
Source:-economictimes.indiatimes.com
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