Tighter World Oilseed Picture

WASHINGTON - Nov 9/07 - SNS -- International oilseed production for 2007-08 is projected at 390.4 million metric tons (MT), down 1.6 million MT from last month, according to the latest forecast from the USDA's World Agricultural Outlook Board.

Foreign production accounts for most of the change as reduced rapeseed and cottonseed production are only partly offset by increased sunflowerseed. Foreign rapeseed production is reduced 1.1 million MT mainly due to lower production prospects for India. Sharply lower rapeseed area is expected due to India's minimum- support price changes favoring wheat over rapeseed. Rapeseed production is also projected 200,000 MT lower for Australia.

Global cottonseed production is reduced mainly due to lower output for Pakistan where insect damage has reduced prospects for the cotton crop. Sunflowerseed production is raised for Argentina due to increased area as producers respond to sharply higher prices for sunflowerseed relative to other crops.

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