October 29, 2008
Predicted spiral in EU's soymeal demand
EU soymeal demand is likely to fall sharply in coming months as animal feed makers turn towards cheaper feed grains, according to Hamburg-based oilseeds analysts Oil World.
Oil World now forecast EU soymeal consumption at around 34.3 million tonnes in 2008/09, down steeply by 2.3 million tonnes from a year ago.
It added that significant changes are shaping up in the feed mix in the European Union. A major driving factor is to be seen in the ample supplies of more attractively prices feed grains relative to oilmeals.
Profit margins in the EU animal feed industry have been depressed in recent months, putting pressure on the sector to cut costs by raising the share of feed grains in compound feeds following this summer's bumper EU cereals harvests, it said.
EU feed makers are also facing abundant supplies of rapeseed meal and sunflower meal as crushings of rapeseed and sunseed increase following good harvests, it said.
EU rapeseed crushing rose by a stunning 21 percent on the year in September 2008 to 1.86 million tonnes, but EU September 2008 soy crushings fell to 1.15 million tonnes against 1.23 million tonnes in September 2007.