Sluggish global soyameal demand is restraining soyabean crushings and so production of soyaoil, Hamburg-based oilseeds analysts Oil World said on Tuesday. "World consumption of soyameal will be smaller than expected in the October-December quarter, probably rising by only 0.8 percent from last year to an estimated 46.0 million tonnes, thus continuing the sluggishness already experienced in July/September 2011," Oil World said.
"The slow off take in meal has curbed crushings of soyabeans world-wide and contributed to the poor crush (profit) margins." But the soyameal consumption outlook is likely to improve in the new year, it said.
It estimates world October 2011/September 2012 soyameal consumption will rise 4 percent on the year to 182.2 million tonnes. Most of the increase will come from China and other Asian countries, South America, North Africa and Russia, it said. Heavy competition from other vegetable oils is likely to darken soyaoil prospects in coming months, it said. "We expect soyaoil imports to decline pronouncedly in North Africa, India and Iran," it said. "Many importing countries are partly shifting from soyaoil to sunflower oil and/or palm oil."
"China is likely to raise soyabean imports and crushings to compensate for insufficient imports of soyaoil." Global October-December 2011 soyaoil output is likely to rise only 0.3 million tonnes on the year to 10.82 million tonnes, a much smaller rise than in previous seasons, it said. In the full season October 2011/September 2012, Oil World estimates global soyaoil production will increase by 1.4 million tonnes to 42.87 million tonnes compared with a 2.6 million tonne increase in 2010/11.
Comments
Comments are closed for this article.