May 24, 2007

EU seen to increase soybean imports

Hamburg-based oilseeds analysts Oil World predicts the European Union will strongly raise its soybean imports to significantly replace US corn gluten feed which is increasingly made from genetically-modified (GMO) corn.

Oil World forecasts EU September 2006/August 2007 soybean imports will rise to 14,850,000 tonnes from 14,187,000 tonnes in 2005/06, partly because of the bloc's restrictions on GMO corn and corn product imports.

Sales of US soybeans-mostly GMO-are likely to be the major beneficiary and are forecast at 3,550,000 tonnes in 2006/07 from 2,510,000 tonnes in the previous season. The European Union does not restrict GMO soybean imports.

Most of the US imports had already arrived by April but EU's soybean supply will likely be covered with South America for its May/August 2007 requirements, the report said.

Brazil is expected to ship 9,200,000 tonnes to the EU in 2006/07, although this would be down from 9,826,000 tonnes last season.

Argentina's 2006/07 soybean cargoes to the EU were predicted to rise to 270,000 tonnes from 76,000 tonnes last season.