Soymeal price falling since March, auguring well for shrimp companies

New Delhi: Domestic soymeal prices have continued to correct in the month of May itself. Prices corrected over the last one month following a decline in edible oil prices. Price is currently at Rs 49/kg down from highs Rs 95/kg seen in Q2FY22. Soymeal prices correction has a positive impact for shrimp feed business of aquaculture companies like Avanti Feeds, Waterbase and Apex Frozen.

Indian soymeal prices have seen a correction since August 2021; however, they did rise from October 2021 till March this year, but for last two months they have been under a correction. India's FAS Kandla soymeal price went down to USD 674 /MT in May as compared to USD 837/MT the previous month last year, which has resulted in fall of soymeal prices by 20 percent and on a month-on-month basis this is still down by 6 percent.

Meanwhile, soymeal exports from India continue to suffer due to high prices. It was down 52% YoY to 43,899 MT in the first two months of FY23. FOB export prices for the month of May were on average US$ 720 per MT which is still sharply higher than the US$ 425-430 per MT quoting at Chicago currently. Prices, in fact, have corrected over the last one month following a decline in edible oil prices. Lower soymeal exports and the recent approval by the Indian government to allow imports of soymeal made from GM seeds will keep domestic prices in check in the foreseeable future. In addition, the ban on wheat exports has also led to some softening of domestic prices, as stated in a note by Research and Rankings.

Shrimp stocks like Avanti Feeds, Waterbase and Apex Frozen Foods have fallen between 38-51 percent from their 52-week high levels. In today's trade the aquaculture stocks have risen between 3-5 percent.