Indian soymeal exporters have booked deals to sell more than 200,000 tonnes over the past week, extending sales well past the usual March drop-off in shipments, as Asian buyers rush to cover supplies lost due to a farmers' strike in Argentina.
"There is bit of a panic buying. Regional traders are taking positions for Indian soymeal," said a Singapore-based trader. Another trader said: "Of course, Indian soymeal will benefit in a big way." Traders said most Indian export deals were sealed at $390-$410 a tonne, free on board. "But now, Indian exporters are asking for $425," the first trader said. Indian soymeal sales normally dry up by March, when Asian buyers look to South American supplies.
But with concerns about supplies growing in Argentina, buyers in the region are willing to pay a premium to get their hands on cargoes available from India. "There is a physical void in the market which could be filled by India," said Davish Jain, chairman of India's Central Organisation for Oil Industry and Trade.
"That is why some demand is coming in, which will last at least till April and may stretch to May also. I think we will be certainly shipping at least half a million tonnes of soymeal during April and May," he said. "This is a good opportunity for India to take care of the immediate needs of south-east Asia and the Far East Asia market."
US soybean futures on the Chicago Board of Trade climbed by their 50-cent limit on Wednesday - for the third day this week - lifted by weakness in the dollar and prospects for more export business due to the Argentine farmers' strike, traders said. May soybeans ended 45 cents up at $13.52 per bushel. But on Thursday, the May soybean futures contract fell about 0.5 percent to $13.45.
"Soymeal prices are likely to be firm to bullish," said Rajesh Agrawal, spokesman for the Soybean Processors' Association of India. He said local soymeal prices were ranging between 15,500 rupees per tonne to 16,800 per tonne.