March 27, 2013

Soy remains dominant oilseed export of US

As sales averaged around 300,000 tonnes annually, soy remains the top US oilseed product export to Malaysia, with a slight expansion expected from the swine and broiler sectors, soy imports are forecast to grow, albeit slowly.

The food service industry consumes close to 100,000 tonnes of soy annually, mostly from Canada.

In line with continued economic growth, robust demand for soy based drinks and poultry meat will continue to be the driving forces for soy and meal imports. Accordingly, meal imports are forecast to grow through 2013-14. Argentina is the dominant meal supplier.

Crude palm oil (CPO) output is forecast to remain at 19 million tonnes through 2013-14. Continued pressure on CPO prices, combined with government initiatives, will encourage both smallholders and larger plantation companies to accelerate replanting, limiting near term production expansion.

The reduction in matured area equivalent from the replanting will be partial compensated for by new mature area in Sarawak. Palm oil exports are forecast to increase to 17.55 million tonnes in 2012-13 and Palm Kernel Oil (PKO) at one million tonnes.

Continued demand growth in key markets is expected to lead to a marginal increase in exports in 2013-14.

China, India and Pakistan continue to be leading markets, while shipments to the US remain near one million tonnes.