March 15, 2012

 

Rabobank unveils new World Grains and Oilseeds Map 

 

Press Release

 

 

Rabobank, the leading global food and agribusiness bank, presented its new World Grains & Oilseeds Map at the "Global Grain Asia" event in Singapore on Wednesday (Mar 14).

 

According to the bank, oilseeds complex traded volumes overtook grains traded volumes for the first time ever in 2010-11 to 230 million tonnes.

 

Oilseeds are the crop most leveraged to world GDP growth as the meal component is critical to animal protein production and the oil fraction is critical to the production of processed foods.

 

Total value of grain and oilseed trade flows has trebled in the last six years, from US$70 billion to US$210 billion.

 

David C. Nelson, Rabobank Global Strategist Grains & Oilseeds, "The global trade of grains and oilseeds is shifting towards emerging economies, in both origination and destination. Brazil for example, has redirected a huge part of its soy exports from static outlets like Europe to very fast growing destinations such as China. This puts pressure on sourcing options for developed countries."

 

Demand and supply growth are coming from different places, for instance China, India and North Africa, respectively in soy, palm oil and wheat

 

Key growing origination regions are Latin America (soy), Malaysia and Indonesia (palm oil) and the Black Sea region (wheat)

 

Rabobank says the core grains and oilseeds supply regions have been unable to match surging demand in the rest of the world. Temporary imbalances have resulted in stocks decreasing and consequently in extraordinary price volatility.

 

Other trends observed by the company include astronomical growth of Chinese soy imports due to rapid industrialisation of meat production.

 

Second, tighter trade and investment relations are seen between China and South America, which accounts for more than 54% of China's total soy imports, with Brazil and Argentina accounting for 34% and 20%, respectively.

 

Third, Indonesia is now close to overtaking Malaysia as the largest exporter of palm oil in the world.

 

Fourth, Black Sea region is the force behind incremental wheat exports but it also causes global market volatility.