Tentative Hike in 2008-09 Rice Supply

WASHINGTON - May 9/08 - SNS -- Global oilseed production for 2008-09 is projected at 423 million metric tons (MT), up 32.2 million MT from 2007-08, according to the latest supply and demand forecasts from the USDA's World Agricultural Outlook Board.

Oilseed production is projected to recover from the first year-to-year decline in global oilseed production since 1995/96. U.S. oilseed production gains account for 40% of the global increase. Total foreign supplies are projected to increase by 4% from 2007-08.

Global oilseed ending stocks for 2007-08 are projected at 56.7 million MT, down 0.5 million MT from last month. Most of the decrease is due to lower projected soybean stocks in the United States resulting from a 15-million bushel increase in projected exports. Soybean stocks for Brazil and Argentina are projected at a combined 39.8 million MT, down 1.5 million from 2006-07.

U.S. oilseed production for 2008-09 is projected at 93.0 million MT, up 16% from 2007-08. Higher soybean production accounts for most of the increase. Peanut production is also projected higher, while production of sunflowerseed, canola, and cottonseed are each projected to decline from 2007-08 levels. Soybean production is projected at 3.1 billion bushels, up 520 million bushels from 2007-08. Soybean supplies are projected at 3.3 billion bushels, up just 3% from 2007-08 despite higher planted area. Most of the production gains are offset by sharply lower beginning stocks.

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