07/10/04 Oilmandi - India's MY 2004 soybean production to touch a record 7million metric tons, due to increased planting in response to relativehigher prices, as per information from the U.S. Department ofAgriculture's Foreign Agricultural Service .

India Harvesting a Record Soybean Crop MY 2004 soybean production isestimated at a record 7 million tons, due to an increase in planted areain response to last year's high soybean prices ($315-410/ton). Plantedarea is estimated at a record 7.6 million hectares, due to a large shiftto soybeans, from competing crops like corn and pulses (in Madhya Pradesh)and sugarcane, pulses, and millet (in Maharashtra). Despite moisturestress, during the early and later stages of crop growth, yields areexpected to be higher (930 kgs per hectare), due to higher and

balanced input use and better agronomic practices. Post's crop survey inthe Malwa sown crop, which constitutes 90% of the total crop in the regionthis year, is in good condition region of Madhya Pradesh, a major soybeangrowing area, revealed that the early despite drought- induced moisturestress. Late rains have delayed the harvest, which typically starts inmid-September, the report said.

Although harvesting is in progress in other growing regions, marketarrivals so far are only 50% of last year's level. The crop currentlyarriving in the markets has a higher moisture content (15%-20%), thusfetching a discounted price of $271-294/ton, compared with $315 per metricton for the crop with a normal moisture level (12%).Trade sourcesanticipate the weakening of prices as arrivals peak in October, and alower protein content in the new crop due to moisture stress.Post continues to estimate soybean meal exports at 3.45 million tons, andsoybean oil imports at 850,000 tons during MY 2003 (Oct-Sept), which issupported by trade estimates and shipping data.