Global oilseed consumption continues to grow despite slowing trade and production – USDA

Global oilseed production is forecast to decline slightly in 2019/20 in contrast to the steady rise observed over the past several years, the U.S. Department of Agriculture said in its latest report.

Soybean production is projected to fall as reduced plantings and harvest in North America more than offset increases in all other regions, it said in its World Agriculture Supply and Demand Estimates (WASDE) report.

Sunflowerseed production is also forecast to fall as flat or declining production is expected in all major producing regions. Both rapeseed and palm kernel output are expected to grow with rapeseed production nearly flat to rising in most regions while palm kernel rises with growing palm oil.

Global oilseed consumption is forecast to rise as growing demand for protein feeds continues to drive the market. African Swine Fever in China and Vietnam continues to slow previous strong demand growth in these markets.

However, low oilseed prices and expected strong global demand for meat and fish drives consumption elsewhere. Soybean consumption, representing 60 percent of the oilseed sector, will continue to be the driving force in total volume growth.

Global oilseed trade is forecast to rise slightly in 2019/20 yet remains below the record volume set in 2017/18. Limited import growth in China and Vietnam are the primary drivers with annual trade growth expected to reach 1 percent in the coming year versus near 6 percent earlier in the decade

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