July 11, 2008

Expectations for EU oilseed production lowered due to reduced rain

Oilseed production forecasts for 2008-09 in the EU were lowered after rapeseed crops suffered from reduced rain in Germany, according to the USDA's Foreign Agricultural Service (FAS).

Rapeseed imports for 2008-09 in the EU are expected to be higher than previously forecast, while export expectations, feed, seed, waste use and ending stocks are expected to be lower, the FAS said.

The forecast for soy imports in 2008-09 also were raised due to increased Italian imports, while soy production estimates were revised down.

Soymeal production was revised up as a result of higher crush, therefore reducing import estimates.  In 2008-09, reduced crush is expected to lower soymeal production, necessitating higher imports.

Increased demand from third-world countries, as well as global market prices caused an increase in 2007-08 estimates for sunflower seed exports, which would result in a lower crush and smaller ending stocks, the FAS noted. For 2008-09, sunflower seed planting area and estimated production were revised down slightly.

FAS reported that within Europe's estimated 294 million tonnes of grain, wheat production was put at 142 million tonnes, barley at 62 million tonnes and corn at 57.4 million tonnes.

Additionally, the forecast for wheat imports were reduced, while that for exports was increased.