Soyameal prices are set to fall from July as increased South American output enters global markets after a slow start to this year's exports, Hamburg-based oilseeds analyst Oil World said on Tuesday. The global July/September 2013 production of the key animal feed soyameal is likely to rise by 3.0 million tonnes on the year to 46.7 million tonnes, the analyst predicted.
"In our opinion there is a considerable downward potential for soyameal prices in the July/September 2013 quarter when we expect sizeable year-on-year increases of world production of soyameal," Oil World said. "Most of the increase will be in South America and will raise export supplies and result in price pressure," it said. South American soyameal exports have been insufficient to meet demand, as port and transport disruptions in Brazil and a lack of farmer selling in Argentina hindered soyabean crops from reaching their final destinations.
Oil World said the downward soyameal price trend is likely to continue and will "probably accelerate" in the fourth quarter. "The global oilmeal market is in transition from tightness to more ample supplies," Oil World said, adding that the current supply-demand situation is keeping prices of soyameal and other oilmeals "at unusually high levels."
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