The Indian soybean meal market witnessed significant volatility in January 2024, with prices fluctuating due to various factors such as global supply chain disruptions, rising input costs, and variations in domestic demand. Despite these challenges, the market remained relatively stable compared to the previous month, with prices ending the month slightly higher than they started.
- Prices:?Soybean meal prices in India averaged around ?41,000 per tonne in January 2024,?with a range of ?40,500 to ?47,000 per tonne.?This represents a slight increase from the average price of ?42,500 per tonne in December 2023.
- Supply:?Soybean meal supply in India remained tight in January 2024 due to lower soybean imports and reduced domestic crushing activity.?This was primarily driven by global supply chain disruptions and rising import costs.
- Demand:?Demand for soybean meal from the poultry and aquaculture sectors remained steady in January 2024,?while demand from the dairy sector softened slightly.?The overall demand outlook for the coming months remains positive due to the expected recovery in the livestock sector.
- Outlook:?The Indian soybean meal market is expected to remain volatile in the coming months,?with prices likely to be influenced by global supply chain dynamics,?import costs,?and domestic demand fluctuations.?However,?the overall demand outlook is positive,?supported by the expected recovery in the livestock sector.
- Rising input costs:?The cost of key inputs such as soybeans and energy has been rising globally,?putting upward pressure on soybean meal prices in India.
- Global supply chain disruptions:?The ongoing Red sea issue and war in Ukraine and Israel and other geopolitical tensions have disrupted global supply chains,?leading to higher shipping costs and delays in soybean deliveries.
- Domestic demand:?Demand for soybean meal from the poultry and aquaculture sectors is expected to remain steady in the coming months,?while demand from the dairy sector may soften slightly.
Government policies:?The Indian government has taken various measures to boost domestic soybean production and reduce dependence on imports.?However,?these measures are still in their early stages and their impact on the market is yet to be seen.
