May 23, 2008

World 08-09 soy output seen up 10 percent on year - FAO

The UN Food and Agriculture Organization Thursday (FAO ) said global soy output in 2008-09 may rise about 9 percent-10 percent on the year and could exceed 240 million tonnes.

This would be about 3 percent above the previous record high harvest achieved in 2006-07, said FAO in a food outlook.

The agency said farmers are anticipated to respond to high oilseed prices by planting more.

"Other oilcrops, in particular rapeseed, may also reach all-time highs, while further increases are also expected in the mature area of oil palms," said FAO.

Increased supplies would likely help ease current supply/demand tightness, according to the agency's outlook.

"A stabilization of international prices for oilseeds, oils and meals around current levels - or somewhat below the actual level in the case of oils - is envisaged for the remainder of the current season and in early 2008-09," said FAO on the current crop prospects.

However, FAO added that oilmeal stocks will likely remain tight due to spillover demand caused by tightness in the global corn market.