HAMBURG, May 7 (Reuters) - Global
soymeal supplies may remain tight up to June because of the unexpectedly
sluggish new crop soybean and soymeal exports from South America, Hamburg-based
oilseeds analysts Oil World said on Tuesday.
“The long-awaited supply relief from
South American soymeal has been repeatedly postponed and now seems unlikely to
begin before end-May or June, keeping protein feed markets on fire both in
Europe and worldwide,” Oil World said in a report.
“Ongoing delays in soymeal arrivals
compounded by insufficient imports in recent months have created a severe shortage,
necessitating further rationing of demand and virtually depleting stocks in
many countries.”
Buyers of soymeal, a major animal
feed, have been awaiting big exports of new crop Argentine and Brazilian
soybeans in early 2013 to relieve a tight global market. Soybean prices hit
record highs in September 2012 as drought hit the U.S. crop.
But port and transport bottlenecks
in Brazil have cut soybean shipments despite strong global demand. Low farmer sales of new crop soybeans in Argentina
have also returned global demand to tight U.S. old crop supplies.
This resulted in sharp price
increases, largely for soymeal for prompt delivery, Oil World said.
Argentine soymeal for May delivery
in Rotterdam was quoted on Monday at $547 a tonne cif a tonne , up from $515 a tonne in early April and around
$514 a tonne in early May 2012.
“Considering this year’s harvest
delays, reserved Argentine farmer selling and logistical bottlenecks in Brazil,
it will apparently take more time than previously thought to alleviate the
global deficit of soybean meal," Oil World said.
“Supply relief is not expected until
from end-May or June, leaving many European feed producers in the red.”
German prices for animal feed wheat are
currently above bread wheat prices as feed manufacturers are being compelled to
buy wheat to provide a protein ingredient to replace soymeal unavailable from
South America.
