The Hindu Business Line : Record output likely in global oilseeds

, PRODUCTION of major oilseeds around the world is expected to hit a new high in 2005-06 with the output projected at 389 million tonnes (mt), up from 380 mt last year. With increased crush of oilseeds and rise in palm oil contribution, global vegetable oil production is projected at 114 mt, up 4 mt from 2004-05.

World oilseeds ending stocks during the current year could rise to 62 mt from 52 mt of last year, the US Department of Agriculture (USDA) said in its latest report on World Agricultural Supply and Demand Estimates.

Ending stocks of vegoil would be 7.7 mt, little changed form previous year.

On soyabean, the report forecast world output at 223 mt(215 mt) with Brazil expecting a rebound in output to 58.5 mt(53.0 mt) and Argentina 40.5 mt (39.0 mt).

Interestingly, despite initial apprehension of Asian rust disease, the 2005-06 US soyabean crop has eventually turned out to be the second best on record — 84 mt versus 85 mt in 2004-05.

China will continue to be the world's largest importer of soyabean with current year's imports projected at a new high of 27.5 mt (25.8 mt).

Given a 4 mt rise in vegoil production for the year and considerably slower diversion for biodiesel purposes so far, international prices are expected to remain range-bound over the next two months, subject of course to normal weather conditions for the Southern Hemisphere crops.

Soyabean oil prices are forecast to remain between 20.5 and 22.5 cents a pound in the US, while crude palm may rule in the (ringgit Malaysia) RM 1,425-1,550 a tonne range.