India's soymeal exports seen up on freight, China

PANAJI, India (Reuters) - India will export a record 4 million tonnes of soymeal in the season beginning October as high freight rates have made it more competitive, a top industry official said on Saturday.

It is likely to export 3.5 million tonnes in the year to September. China is emerging as a key market.

Davish Jain, chairman of the Central Organisation of Oil Industry and Trade, said that nearly 800,000 tonnes of soymeal exports have already been contracted for the new season crop at around $300 per tonne FOB.

"China is a big, tricky market as Chinese demand keeps fluctuating, but we will be able to sell a substantial quantity this year," Jain told Reuters on the sidelines of an edible oils conference in the tourist state of Goa.

"I will not be surprised if India exports more than a million tonnes to China because of the freight advantage," he added.

Traders have said India now enjoys an advantage over rival South American producers as it is closer to leading Asian markets at a time when freight rates are on the rise.

Indian trade officials said China's soybean crop this year is expected to be 20 percent lower, and the market for Indian soymeal was buoyant.

Jain said India could emerge as Asia's largest supplier of soymeal in the new season.