Opportunities for india as US falls behind due to drought damage
India’s soybean-meal exports could grow up to 5 percent in the 2013 harvest year beginning October 1, exceeding 4 million metric tons compared to 2012’s 3.8 million metric tons, according to Atul Chaturvedi, CEO of exporter Adani Wilmar Ltd.
Soybean-meal prices have increased 55 percent in 2012 and reached a record on concern that the worst U.S. drought in at least 50 years will shrink soybean and corn supplies from the world’s largest exporter. But soybean meal futures have fallen 10 percent since reaching an all-time high of $541.80 per 2,000 pounds on the Chicago Board of Trade on September 4. The December-delivery contract was at $486.70 at 3 p.m. in Mumbai on September 21. Soybeans rose to a record $17.89 a bushel also on September 4, as U.S. farmers will harvest the smallest crop in nine years.
India competes with the U.S., Argentina and Brazil to supply animal feed to China, Vietnam, Japan and South Korea. The country usually exports more than 70 percent of its soybean-meal output. Traders have contracted to sell as much as 300,000 tons at prices ranging from $620 per ton to $640 per ton free-on-board to buyers in South East Asia and Africa for shipment in November and December, said Rajesh Agrawal, spokesman for the Soybean Processors Association.