Rains pare India soymeal export forecast by 1 mln tonnes - traders

* Soymeal exports still seen more than last year

* High protein soymeal to hit spot markets by mid-November

By Ratnajyoti Dutta

NEW DELHI, Oct 31 (Reuters) - India's soymeal exports may be limited to 4 million tonnes in 2013/14, around a million tonnes lower than early forecasts, as rains during the harvest damaged the oilseed crop in the main growing areas, traders and industry officials said on Thursday.

But exports should still be up from last year and, already, deals have been closed for about 900,000 tonnes of the animal feed in the new marketing year from Oct. 1 for shipment until December. Deals could pick up once the quality of soybeans arriving in markets improves.

"Soymeal exports will be less than early expectations as the soybean crop size is set to be lower than our initial forecast," said Rajesh Agrawal, coordinator of the Soybean Processors Association of India (SOPA).

"We still bet on at least 4 million tonnes of exports," he told Reuters by phone from the central city of Indore, the soybean hub of the south Asian country.

This year's above-average monsoon rain season, the first since 2007, led to initial forecasts of soymeal exports as high as 5 million tonnes, with expectations for a record soybean crop. Exports in 2007 were a record 4.9 million tonnes.

Estimates for soybean production vary considerably and can depend on timing of the forecast, from planting to harvest.

Farmers planted about 14 percent more land with soybean compared to a year ago by the end of the June-to-September monsoon, 23 percent more than the average of recent years.

Taking that bumper acreage into account, the farm ministry's initial forecast was for a record harvest of around 16 million tonnes, but this will be scaled down in subsequent forecasts as the extent of damage to the crop becomes clearer.

SOPA last month estimated output of 12.98 million tonnes as the new soybean crop had just started hitting markets, but later on revised it down to 12.23 million tonne.

Last week, the Central Organisation for Oil Industry and Trade (COOIT) revised its own earlier estimate down 4.4 percent to 10.23 million tonnes because of the damage from heavy rains after the full monsoon ended.

COOIT's forecast excludes beans set aside for use as seed in the next planting season -- usually about 2 million tonnes.

Concerns over damage to the crop have prompted some traders to be conservative in projecting exports for soymeal, a by-product of crushing soybeans for oil. India's soybean products are preferred by Asian buyers due to the absence of genetically modified strains.

Late rains in major producing areas could have kept moisture content high in the crop, which would damage the beans badly and reduce protein content.

Currently, soymeal available in spot markets contains 47-48 percent protein. On India's west coast, soymeals quoted $550-$560 per tonne Free on Board.

"High protein soymeal with over 50 percent protein content will be available in two weeks time," said an Indore-based trader.

Uncertainty over quality makes it difficult to forecast soymeal exports, said Atul Chaturvedi, chief executive of Adani Wilmar, the biggest edible oils importer and refiner in the country.

But industry executives agreed that, whatever the damage from late rains, exports of soymeal would be higher than last year as they will also benefit from the weak rupee, which touched a record low earlier this year.

"Soymeal exports could be slightly higher than last year's level," said Sandeep Bajoria, chief executive of Mumbai-based trading house Sunvin Group.

India exported 3.5 million tonnes of soymeal in 2012/13 with Iran, South Korea, Thailand and Vietnam as major buyers.

Meanwhile, domestic demand for soymeal is likely to remain around 4 million tonnes this year as a slowdown in the Indian poultry industry will keep consumption static at best.

The poultry industry, which saw rapid expansion in recent years, had more capacity than it needed last year.

While India's consumption of poultry and products is rising sharply as incomes increase and global communications increase awareness of the need for high-protein foods in a balanced diet, farmers built more capacity than they needed last year.

That scenario is expected to continue this year, ruling out any increase in demand for soymeal from the domestic industry. (Editing by Jo Winterbottom and Tom Pfeiffer)