India's soyameal exports have been subdued so far this year but traders are optimistic of signing fresh deals with global prices turning favourable and renewed demand from Southeast Asia, traders said on Monday. The country sold about 50,000 tonnes of soyameal last week after a lull in sales because of low soyameal export prices.
"This year everything has been on the negative side but we expect new deals should be coming soon," Rajesh Agrawal, chairman of the Indore-based Soyabean Processors' Association of India, told Reuters.
India grows only one soyabean crop a year, for which sowing takes place in June and July and harvesting begins in September.
The Central Organisation for Oil Industry and Trade, a top trade body, said on Sunday the country was likely to produce 6.6 million tonnes of soyabean compared with 6.85 million last year.
Chicago Board of Trade soyabean futures were firm last week after the USDA said two preliminary tests for mad cow disease in one animal were positive. Results from a second round of testing were expected in four to seven days.
Fears of mad cow disease are seen helping soyameal sales as bone meal users turn to it as an alternative.
Discovery of Asian soya rust in soya fields in Louisiana and Mississippi also sparked a price rally. Dealers said Indian soyameal was expected to be traded around $200 a tonne free alongside ship, the highest level in the season. It was traded at prices close to $400 last year due to a supply shortfall from South America and the United States.
"Sales will continue on a low key but nothing spectacular is expected," said Atul Chaturvedi, vice-president of Adani Exports Ltd "Last year was a boom year, every year can't be the same."
India, Asia's leading soyameal exporter, has sold around 400,000 to 450,000 tonnes soyameal during the season which began in October compared with normal sales of around 1 million tonnes by this time of the year.
Traders expect the country to sell around 2.2 million tonnes of soyameal in this season compared with 3.5 million tonnes exported a year ago.
They said sales were expected to drop because domestic soyabean prices were firm and crushing costs were high making soyameal expensive.
Traders said the domestic market continued to be tight with soyabean prices ruling at 13,500-13,750 rupees a tonne compared with 12,500 rupees two weeks ago and 12,000 rupees a month ago.
"But we expect new business with Chicago prices also improving on rust fears and mad cow disease observed in some regions," said one trader.
Agrawal said traditional buyers of Indian meal like Korea, Japan, Taiwan and Indonesia would have to cover up for their end-year demand.
He said the voyage time from India was hardly 20-25 days depending on the destination, compared with a minimum period of 45 days from South America, raising hopes of some sales.
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