Thailand, Philippines animal feed producers cancel soymeal imports

Thailand, Philippines animal feed producers cancel soymeal imports

Surplus of South America supplies causes global prices to fall

Animal feed producers in Thailand and the Philippines have canceled or delayed around 130,000 metric tons of soymeal imports as a surplus of South American supplies causes global prices to fall.

According to traders, the majority of the soymeal affected comes from Argentina, which is expected to produce a bumper soybean crop for the 2011 season. “[Buyers] had overbought soymeal in forward deals and now that there is plenty of meal lying around, buyers are looking to postpone and even cancel shipments,” said a Singapore-based trader. “We expect more buyers to renegotiate and delay shipments.”

Soybean meal has lost 7% on the Chicago Board of Trade since the start of April. As of 8:05 a.m. CST on May 17, July futures were trading up 1%.