Soybean meal in Chicago slumped after India, Asia’s biggest supplier of the livestock feed, said it may ship a record quantity next year after rain in the biggest growing regions encouraged increased soybean planting.
Exports of meal in the year starting October may surpass the 5 million metric tonne estimate for this year, the Soybean Processors Association of India said. Record prices of wheat, rice and corn spurred increased plantings this year from Australia to the US, helping ease a global food shortage.
“Indian soybean meal can be competitive as a cheaper alternative’’ to importing soybeans or soybean meal from the US, said Li Gang, program manager at Jilin Grain Group Co. by phone from Dalian. “Around the world grain output is gaining.’’
Soybean meal for December delivery dropped as much as $5.40, or 1.6 per cent, to $327.30 per tonne, in after-hours electronic trading on the Chicago Board Of Trade. It traded at $327.40 a ton at 5:46 pm in Seoul. The contract has slumped 27 per cent from a record $445.70 on July 3, on concerns higher grain costs will reduce livestock production.
Soybeans, corn and wheat also fell on speculation global grain stockpiles will expand following a surge in global planting. December-delivery wheat dropped as much as 12 cents, or 1.4 per cent, to $8.35 a bushel on the Chicago Board of Trade, before trading at $8.37. Prices are down 38 per cent from the record $13.495 a bushel reached February 27 in part on expectations bigger crops in countries including Australia would boost supplies.
Australian wheat
ProFarmer Australia said on Tuesday wheat production in the country, forecast to be the world’s third-largest exporter, may exceed a government prediction after rainfall in July and farmers sowed a record crop.
Soybean export sales for delivery before the end of August jumped 38 per cent.