The Rupee which has depreciated 3% since the beginning of the year has not benefited soymeal traders as domestic prices continue to remain out-priced in the global market. Indian rupee is currently at 71.98 today.
Indian soymeal is priced at $380-$400 per ton while other destination is priced at $320 per ton. This has caused India soymeal exports to fall to over two and half year low in the month of July.
According to Solvent Extractors Association of India, soymeal exports in the month of July were pegged at 26,006 tn as compared to 62, 524 tn in June 2019.
Meanwhile, with the lingering trade tensions between the US and China a ray of hope was seen but that also does not seems to materialize due to in-competitive Indian prices.
As per media sources, China has started to source its requirement for meal and seed from Argentina, the third largest producer of the oilseed in the global market. A sharp jump in the China imports of soybean from Argentina was witnessed in the month of July. Imports of soybean into China in July from Argentina increased phenomenally to 1.07 mln tn, up 328% on month while that from Brazil were pegged at 6.42 mln tn, up 17%.