India's soymeal exports in November jumped almost three-fold from a month ago as supplies of the animal feed improved after newly harvested soybeans arrived for crushing, a leading trade body said on Friday.
While that should ease worries about supply triggered by rains at the start of the harvest, Asia's top soymeal exporter is still expected to ship less than initial expectations in 2013/14 as high prices deter buying.
India's soymeal exports rose to 503,269 tonnes in November from 182,724 tonnes a month ago, the Mumbai-based Solvent Extractors' Association said in a statement.
Over October to November, the South Asian country exported 685,993 tonnes of soymeal, up 21 percent from a year ago.
"Better realisation due to higher price and a weak value of the rupee led to the surge in overseas soymeal sales," said B.V. Mehta, SEA's executive director.
The average export price for soymeal stood at $557 per tonne in November against $541 per tonne in October, free on board, giving better returns as the domestic currency lost more than 1 percent against the U.S. dollar last month.
South Korea, Japan, Thailand, Vietnam, Indonesia and Iran are the major buyers of Indian soymeal. Soybeans are crushed to produce edible oils and animal feed.
Rains during the start of the soybean harvest in October had raised concerns that soymeal supplies could be less this year and could result in delays or even defaults in export deals.
Traders said there were no reports of any default in soymeal export deals despite high domestic prices.
They forecast export deals of 1.4-1.6 million tonnes from Oct. 1 to Jan. 31 as traditional buyers in Southeast Asia have covered requirements, versus 1.7 million tonnes a year ago.
A drop in sales to Iran and higher prices of soymeal are the main reasons behind the lower export estimates.
India's near-monopoly in soymeal exports to Iran is expected to break following Tehran's nuclear deal with the West which is expected to pave the way for rival suppliers to boost their trading with the oil-rich country.
In November, Iran imported 184,860 tonnes soymeal from India as against 33,000 tonnes in October.
But Iran may no longer be willing to pay a high premium for Indian supplies after last month's deal with the West.
India soymeal was quoted at $560 per tonne free on board as against about $490 for supplies from South America.
India's soymeal exports may be limited to 4 million tonnes in 2013/14, around a million tonnes lower than early forecasts, traders and industry officials have said.
Total oilmeal exports by India, the leading supplier of animal feed to Asia, rose to 560,648 tonnes in November, up 52 percent from a month ago.
Source:- in.reuters.com
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