India cancels 25,000MT soymeal export deals

Indian traders have cancelled 25,000 metric tonnes of soymeal export contracts for the first time since 2021 and booked 80,000 tonnes of imports from African countries after soaring domestic prices reversed trade flows, trade sources said.

The cancellations are likely to help soymeal suppliers in North and South America boost shipments to Asian buyers that traditionally source from India. India's soybean purchases are also allowing African exporters to sell the oilseed at a hefty premium to global benchmark prices.

The sudden jump in domestic soybean prices pushed up soymeal costs, making it difficult for traders to fulfil export commitments, said two dealers with global trade houses, who declined to be named publicly because they were not authorised to speak to the media.

"It wasn't possible for sellers to absorb the $200 per tonne increase, so they mutually agreed with buyers to cancel the contracts for May and June shipments," one of the sources said.

The cancellations, or washouts, which have not been reported previously, are rare in the soymeal trade, as sharp price swings are relatively uncommon. The washouts did not involve penalties.

Local soymeal prices jumped 41% in a month to 66,000 rupees per metric tonne, their highest level in four years, amid tight supplies due to a drop in soybean production.

The rally pushed Indian soymeal export offers for June loading shipments to about $695 per metric tonne free on board, up from around $475 a month ago, the sources said.