GLOBAL – The global oilseed production is forecast to grow 5 percent in 2021/22, primarily on growth in soybean output in the United States and South America, according to a recently released report by USDA.
The USDA projects that about 632 million tons of oil seeds will be produced during the year under review due to record plantings.
Soybean production is forecast to rise 23 million tons to 386 million, a 6-percent increase while production of all oilseeds is forecast to increase, with all but cottonseed and rapeseed reaching at least 10-year records.
Nearly all production growth is limited to the United States and South America and furthers the trend of concentrating production in exporting countries.
The United States and Brazil account for roughly two-thirds of this gain with similar expansion expected in area planted and production.
Production increases are primarily a result of larger planted area, spurred by the highest prices since 2014.
Consumption of oil seeds is also projected to rise thanks to a higher soybean demand in China, reflecting a rebuilding of feed demand following African swine fever.
Soybean crush and feed waste consumption are projected to account for more than half of the growth in global oilseed use, according to USDA reports.
Sunflowerseed consumption is also expected to jump 9 percent and cottonseed consumption to rise 3 percent as supplies rebound from the current year shortfalls.
Global vegetable oil consumption projected to grow
Despite high global prices, global vegetable oil production is expected to grow by 4 percent, with palm, sunflower seed, and soybean oils being the major drivers of growth.
Global food consumption is forecast to expand by more than 4 million tons (3 percent) with global industrial consumption forecast to grow by over 2 million tons (4 percent), driven by expanding U.S. biodiesel production (up 26 percent).
Global vegetable oil trade is, on the other hand, forecast to reach a record in 2021/22 owing to strong recovery in sunflowerseed oil trade and continued palm oil growth.
Continued strong demand for oils pressured global vegetable oil ending stocks to their lowest level since 2010/11, according to USDA.
As production of oil seed reaches new records and demand maintained at higher-than-average levels, commodity trading giants ADM and Cargill have announced plans to expand their grain crushing capacity.
Investments in grain milling rise
Earlier, In April Cargill announced plans to construct a new US$350 million canola processing facility in Saskatchewan, Canada, in an effort to meet growing global demand for canola product.
This was in addition to an earlier announcement to invest US$25 million to improve production capacity at its soybean processing plant in Fayetteville.
ADM also recently announced plans to construct a new US$350 million soybean processing plant in North Dakota, US to cater to increasing demand from the food, feed and biofuel industries.
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