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Short supply pushes up soymeal prices

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Newswire18 Indore
Domestic soymeal prices have risen by Rs 500 a tonne since Tuesday on demand from exporters, firm overseas prices and limited supply, traders and market participants said.
 
At the Indore market, soymeal prices were quoted at Rs 9,800-10,000 a tonne today, up Rs 300 from Wednesday's close.
 
"There has been a rise in soymeal exports in last couple of days, which firmed up the market sentiment as the supply is limited because of low oilseed production," said the official of a major player in the industry.
 
He expects soymeal prices to stay firm in the coming days if overseas markets remain supportive.
 
"Soy complex on Chicago Board of Trade has firmed up since Friday as US Department of Agriculture lowered its 2006-07 (Oct-Sep) crop estimate, while other crops such as corn and grains are also steady, fuelling speculation that more and more farmers in the three main soy-growing nations "" the US, Brazil and Argentina "" might shift to corn and wheat in the next sowing season," he added.
 
Industry players said India has entered into three big soymeal export obligations at good prices, which has also lifted the market sentiment.
 
"We have entered into contracts for supply of three shipments of soymeal to Indonesia and the Philippines at a very good price of $272-$275 (carriage and freight, Kandla port)," said the official of another player in the industry. Each shipment consists of around 15,000-20,000 tonne soymeal.
 
"Some traders are also purchasing soymeal directly from Indian markets and selling them internationally to cash in on the high prices, which is pulling up meal rates," said another trader.
 
Industry players said India's local soymeal demand is also likely to improve in 2006-07 (Oct-Sep) because of economic growth.
 
Though the demand for soybean has moved up in last few days, supply has not matched because farmers are holding on to their produce in anticipation of a further rise in prices.

 
 

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First Published: Jan 19 2007 | 12:00 AM IST

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