Bloomberg News

World Oilseed Crush to Rise, Led by Sunflowers, Oil World Says

December 20, 2011

Dec. 20 (Bloomberg) -- Global crushing of 10 oilseeds will climb 4.3 percent in the year through September 2012, with the biggest gain in processing of sunflower seeds, industry researcher Oil World forecast.

Crushing will climb to 393.2 million metric tons in 2011-12 from 376.9 million tons a year earlier, Hamburg-based Oil World said in a e-mailed report.

The increase in oilseed crushing will lag behind the year- earlier gain of 5.3 percent, in part due to lack of demand for soy meal, a by-product of oil extraction from soybeans that’s used as livestock feed, Oil World forecast.

“The slowdown is partly attributable to problems in finding sufficient demand for soya meal, given repercussions from the poor economic development on meat demand and livestock production,” Oil World said.

The “large” supply of competing feed grains is also holding back demand, according to the researcher.

Soybean crushing may rise 3.6 percent to 230.5 million tons from 222.5 million tons, based on the Oil World forecasts. Sunflower-seed processing will jump 14 percent to 34.1 million tons from 30 million tons, according to the report.

Crushing of rapeseed, the second-most consumed oilseed, is forecast to slip to 58.2 million tons from 58.5 million tons, while crushers may process 36 million tons of cotton seed, from 33.1 million tons in 2010-11, Oil World data show.

“The most dynamic development is occurring in sunseed,” Oil World said, adding it expects increases in Ukraine, Russia and the European Union. “The downtrend in rapeseed processing is seen continuing,” the forecaster said.

--Editors: John Deane, Claudia Carpenter

To contact the reporter on this story: Rudy Ruitenberg in Paris at rruitenberg@bloomberg.net.

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus