Global soyameal supplies are likely to remain tight up to May and possibly even June because of a slow start to exports of South America's new soyabean crop this year, Hamburg-based oilseeds analysts Oil World said on Tuesday. Consumers of soyameal, a major animal feed, have been awaiting large exports of new crop Argentine and Brazilian soyabeans in early 2013 to relieve a tight global market. Prices hit record highs in September 2012 as drought hit the US crop.
"Arrivals of soyabeans and products in the importing countries will remain insufficient in April and partly also in May as a result of the continuing severe reduction of exports in March," Oil World said. "This affects primarily consumers of soyameal, reflected in the unusual strength of soyameal prices for prompt delivery," the firm added. New crop exports from Brazil have been limited by congestion in Brazilian ports, while Argentine farmers have been reluctant sellers in the face of uncertain government policy. Nearby prices for soyameal were strong in the European market on Monday on worries that congestion in Brazilian ports could lead to a supply squeeze.