January 18, 2008

EU to continue to substitute soymeal for wheat until harvest

Soymeal will continue to act as a cheaper alternative to wheat in the EU, according to USDA's Oilcrop Outlook released Monday ( January 14, 2008).

Adverse weather in 2007/08 which affected wheat production in the EU and driven prices to record levels,  encouraged feed millers to turn to imported soymeal as a cheaper substitute.

Until the next wheat crop in Europe is harvested, soy meal will be a comparative bargain, the USDA report said.

With vegetable oil also in short supply, domestic crushing and soy imports

are a more favored source for soy meal.

EU-27 imports of soy were forecast up 200,000 tonnes this month to 15.45 million, with consumption of soy meal up to 34.6 million tonnes.