ndia''s oilmeal exports drop for 2nd year, weak SE Asian demand hurts

Soymeal exports down 18 percent for year ended March * South Korea, Iran and France top three soymeal buyers * Indian soymeal costlier than South American supplies (Adds trade body chief''s comments, rapeseed meal, background) NEW DELHI, April 7 - India''s oilmeal exportsdropped by a tenth to 4.33 million tonnes in 201314, fallingfor a second straight year as high prices of its soymeal curbedSoutheast Asian demand for the animal feed, a leading trade bodysaid on Monday. Overseas soymeal sales by Asia''s top supplier fell about 18percent to 2.8 million tonnes in the year ended March 31,accounting for most of the drop in oilmeal exports, data fromthe Solvent Extractors'' Association of India (SEA) showed. "We lost ground in traditional markets in Southeast Asia,"said B.V. Mehta, executive director of SEA. Exports to Japan,Vietnam and Indonesia fell as cheaper supplies were availablefrom other origins including China and Argentina, he added. The average Indian soymeal export price rose to $606 pertonne, free on board, in March from $569 a month ago, data fromthe SEA showed, due to tight local supplies of soybean that iscrushed to produce soybean oil and meal. India''s soybean output is estimated to have dropped 4.4percent to 10.23 million tonnes in 201314 due to crop-damagingrains during harvest. The country is currently offering soymeal at $630, whilesupplies from Brazil and Argentina are available for $530-$550,a Mumbai-based trader said. Last year, the major destinations for Indian soymeal wereSouth Korea, Iran and France. On a monthly basis, soymeal exports rose nearly 22 percentto 223,204 tonnes in March, reversing a decline that started inDecember last year, as sales to Iran and France improved. But traders expect soymeal exports to weaken in April asprices are still higher compared to meal from other origins. India''s 201314 rapeseed meal exports rose 16.4 percent to916,050 tonnes as big buying from South Korea and Thailandhelped shrug off a ban by China on Indian oilmeal imports. China, which was India''s No.2 client for rapeseed meal,banned oilmeal imports from India in 2012 after finding in themtraces of malachite green, a hazardous chemical.