Little Change in Global Oilseeds

WASHINGTON - May 12/06 - SNS -- World oilseed production should be little changed in 2006-07 at 390 million metric tons (MT) versus 390.68 million last season and 380.79 million MT in 2004-05, according to updated supply and demand forecasts by the USDA's World Agricultural Outlook Board.

Brazil's soybean crop is reduced 0.5 million MT to 56.5 million MT, reflecting lower-than-expected yields as harvest nears completion. Largely offsetting the reduction in Brazil's soybean crop is an increase in copra production for the Philippines.

U.S. oilseed production for 2006-07 is projected at 94.7 million MT, down 2% from 2005-06. Soybean production is projected at 3,080 million bushels, down 6 million bushels from 2005-06. With soybean production projected near last season's level, most of the reduction comes from other oilseeds including sunflowerseed, cottonseed, peanuts, and canola.

Soybean supplies are projected to reach a record 3,649 million bushels, up 9% from 2005-06 due to sharply higher beginning stocks. Soybean crush is projected to increase to 1,750 million bushels, reflecting sharply higher domestic soybean oil demand, a moderate increase in domestic soybean meal disappearance, and increased soybean meal export prospects.

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