drop in production of meat and lower demand for compound feeds resulted in oilmeals export continuing to decline for the fifth straight month. The solvent extractors industry is, however, bullish about its prospects in view of the crop failure in South America.
The Solvent Extractors Association of India (SEAI), in its data released on Monday, said oilmeals export in May declined 64 per cent to 1.78 lakh tonnes (lt) against 4.92 lt during the same period a year ago.
For the calendar year, the shipments have dropped 51 per cent to 17.68 lt (35.94 lt).
According to SEAI, several Asian nations have suffered due to crisis in the livestock industry that has led to lower consumption of soyameal and other oilmeals. In particular, exports of soyameal dropped by over 75 per cent to 77,018 tonnes in May against 3.26 lt.
Rapeseed meal shipments slipped to 87,472 tonnes (1.13 lt) and rice bran to 6,560 tonnes (36,135 tonnes). Castormeal exports declined to 7,300 tonnes (16,150 tonnes).
Outlook
SEAI said global production of soyabean was expected to fall 68 lt and the tightness in meal supplies was a major bullish factor for oilmeals.
While soyabean production in Argentina would decline to 32.7 million tonnes (mt) from 46.2 mt last year, output in countries such as Brazil, Paraguay and other South American countries would also be lower. The situation could well continue till the year-end, it said.
Unit value up
One bright feature of the export scenario is the rise in unit value. For example, soyameal exports fetched a unit value of $461 in May against $399 in February and $437 in April. Similarly, rapeseed meal value increased to $249 in May from $178 in February and $219 in April.
Among import nations, China bought 90,754 tonnes, primarily rapeseed, while Vietnam cut its purchase to 1.15 lt during April-May (3.37 lt).
Shipments to Japan, Korea, Indonesia and Thailand too suffered during the period.
Source : Business Line