April 21, 2009

Demand for soy and soymeal is seen to stay relatively steady while soyoil requirements on the same period are expected to increase due to local biofuel industry's upward expansion, reports the US Department of Agriculture.

In a survey conducted by the Korea Rural Economic Institute (KREI) in December last year, soy area is expected to increase to nearly 76,700 hectares; up two percent from the previous year. Based on these results, USDA expects soy production will stay around 130,000 tonnes.

Soymeal demand will flatten out at 900,000 tonnes , which is slightly below the 1 million tonne crushing capacity. Production is likewise to level off at about 700,000 tonnes with a 79.2 percent rate of extraction and 44 percent crude protein.

Soyoil consumption is forecast at 600,000 tonnes, up ten percent from the previous year because of rising demand for biodiesel production.  The government plans to increase the biodiesel blend ratio from its current level of 1.5 percent in crop year (CY) 2009 to 3 percent by CY 2012 which is expected to increase demand for the main biodiesel feedstock--imported soyoil. Local biodiesel producers are expected to use an estimated 200,000 tonnes of imported soyoil in MY 2009-10.

For more of the USDA report, please click here.