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India has set soybean meal stock limits from December 23, 2021 to June 30, 2022, in an attempt to contain rising domestic prices, according to a report from the Foreign Agricultural Service of the United States Department of Agriculture (USDA). ). For factories, mills and processors, the maximum inventory allowed is 90 days of production, according to their daily input production capabilities.
For trading companies, only government-registered companies are eligible to stock soybean meal, with a maximum stock limit of 160 tons with a defined and declared storage location. Imposing inventory limits will likely prevent hoarding and ensure product availability for home crushers, according to trade and industry associations. Soybean processors typically do not stock soybean meal due to the high economic price.
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With domestic soybean production estimated at 11.9 million tons, it is unclear how inventory limits on soybean meal, as opposed to soybeans, will ensure price correction, the USDA said, and maintain availability for soybean manufacturers. compound feeds. “Imposing inventory limits on soybean meal could reduce crushing, which in turn would lead to greater soybean availability and potentially keep soybean prices in check,” the USDA said.
Domestic prices from September to December 2021 ranged from $ 706 to $ 892 per tonne, compared to the minimum support price of $ 526 per tonne. In the same period, soybean meal prices varied between US $ 693 and US $ 799 per ton. A bumper harvest in Brazil arriving in February 2022 could result in moderation in global prices, the USDA said. India's various poultry industry associations welcomed the move. Domestic poultry companies were most affected by the increase in animal feed prices.
By: Leonardo Gottems | agrolink
