October 14, 2009

US soy and soymeal exports to EU remain very low due to tough EU rules stopping shipments with traces of unapproved genetically modified organisms (GMOs), Hamburg-based oilseeds analysts Oil World said on Tuesday (Oct 13).

The EU this summer blocked unloading of several shiploads of soy due to its zero-tolerance ban on imports containing traces of GMO corn which is not yet approved for sale in the bloc.

Oil World said European feed manufacturers have generally been reserved buyers of soymeal recently in view of the persisting problem of zero-tolerance of unapproved GMO material, which practically prevents EU imports of US soy and soymeal.

Oilseed crushers with the capability are turning towards rapeseed and sunflower seed processing but the disruption to soy imports means EU oilseed crusher supply cover is lower than expected, it said.

The EU hopes to draw up new regulations on the issue by the end of the year.

Meanwhile, alternative South American soymeal export supplies are tight after poor soy harvests this year and competition is likely to heat up for soymeal offered on Europe's market, Oil World said.