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Europe shrugs off force majeure on Indian soymeal

European animal feed markets calmly absorbed news that last week's earthquake had stranded up to 130,000 tonnes of soymeal in India's main port and obliged a shipper to declare force majeure on a 20,000-tonne cargo.

"The figures are too small to make an impact here as the market keeps on talking about ample world supplies," one dealer in Rotterdam said on Tuesday.

Grain house Peter Cremer said it declared force majeure on about 20,000 tonnes of Indian soymeal to be delivered to South Korea early next month after the earthquake brought a halt to commercial operations at India's busiest port, Kandla.

Asian traders said they were worried a squeeze could develop in the region's nearby soymeal market since 50,000 to 130,000 tonnes of soymeal would remain in the port in Gujarat.

Commercial operations at Kandla were not expected to resume before mid-February, shippers and officials said.

European traders said any effect on the global soy market would be minimal, especially given the current bearish trend in prices.

Record crops due in South America from March and April are expected to lead to plentiful supplies.

Operators in Europe said that if Korean buyers needed to cover their needs, they would seek local supplies or turn to South America.

South Korea was not expected to try to cover nearby needs in Europe, as this would make little sense logistically.

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