April 10, 2008

USDA reports increase in Russian soy imports on brisk meal, oil demand

The year-long surge in commodity prices has contributed to sustained economic growth in Russia, the USDA said Wednesday.

The report said that growing incomes have allowed Russian consumers to upgrade diets leading to an increase in poultry demand and consequently, domestic production.

With poultry production forecast to grow 10 percent in 2008, demand for feed, especially soymeal, is expected to rise.

Growing consumer incomes was also seen contributing to a rise in vegetable oil demand.

With the shortfall in sunflower seed production in 2007, demand for alternative oils, like soy oil, is especially strong.

The two factors are already pushing soy imports higher for the year. Imports are expected to approach 300,000 tonnes, an eight-fold rise from the previous year.

Exporters have shipped nearly 200,000 tonnes of soy to Russia through March.

Furthermore, with Brazil, the largest supplier of soy to Russia, approaching its primary shipping season, additional purchases are expected.