July 4, 2013

In order to make up for a shortage of South American soymeal after transport bottlenecks have hindered shipments, the EU is increasing imports of soy for processing in the region.

According to Hamburg-based oilseed analysts Oil World estimates, EU October 2012-September 2013 soy imports will rise to 13.5 million tonnes from 12.6 million in the same year-ago period.

"Imports and crushings are driven by the severe shortage of soymeal, which is subsiding only gradually," the Hamburg-based oilseed analysts said on Tuesday. South American exports of soymeal, an important animal feed, have been insufficient to meet demand despite bumper crops this year. Port and transport disruptions in Brazil and a lack of farmer selling in Argentina have prevented soy from reaching their final destinations.

The US has benefited from extra EU soy demand. The EU imported 1.25 million tonnes of soy from the US in February-April 2013, up from 0.52 million tonnes in the same time in 2012, Oil World said. South American soymeal exports should at last be available in greater volumes from July to September, Oil World said. "Still, the long-awaited recovery of soymeal supplies will be more than offset by the tightening availability of other oilmeals, primarily sunflower meal, leaving total EU oilmeal supplies below the year ago-level in the last three months of this season," Oil World said.