USDA estimates global oilseed production and consumption lower - inventories at a low level The US Department of Agriculture (USDA) has cut global oilseeds production to 571 million tonnes from its month before in its Nov. 19 issue . Compared to the previous year , a 4.25 % reduction in production is assumed. The main contributor to the decline is soybean depletion of -22 million . t. Rapeseed also had to be reduced by 4 million tonnes or 5.5% . The same is observed in the case of peanuts . In contrast, oilseed processing is estimated to be 5 million tonnes higher, an increase that is particularly noticeable for soybeans . The resulting final stocks fall by 28 million tonnes or 22% to just an average of 110 million tonnes. This is the first time the lush supply situation of the previous year is over.In the soya sector , the US decline from last year's 120 million tonnes to the previous year's estimated 96.6 million tonnes is fully accounted for. The Brazilian harvest expected in the spring of 2020 is expected to increase from 117 million tonnes last year to 123 million tonnes . To this day, the last order work is still done. Seed delays initially due to drought have now been compensated by favorable rainfall. On the import side , the sharp decline in Chinese imports remains at 85 million tonnes, compared to the previous 95 million tonnes. But that is still 60% of world trade in soybeans. On the import side , Brazil, with 76 million tonnes, has been ahead of the USA for several years, coming down to 48 million tonnes instead of the usual 58 million tonnes. However, the Americans expect the recent negotiations with China to bring about much-needed recovery. After all, you sit on 13 milliont unsold US inventories; in previous years, only a third of them were in the silos. After several months of hesitation, the USDA now assumes the low oilseed rape estimates of 17 million in the EU and 19.5 million tonnes in Canada . Rape crops in China ( 13.1 million tonnes) and India (7.7 million tonnes) are also lower. The supply situation is scarce, not only in the EU, but also worldwide. Canada plays a special role with unsold remaining stock of 3.7 million tonnes, because China is blocking political imports from Canada. Canola rape is not easy to market for LVE reasons . For the second market leader in the vegetable oil sector, palm oil, the USDA slightly reduced the harvest result to 75.8 million t compared to the previous month. Compared to the previous year , the harvest is still 2 million t higher.Major producers Indonesia and Malaysia have an 85% production and 90% export share. Compared to the previous year, inventories are expected to be reduced compared to previous years due to increasing consumption in the biodiesel sector. Following a strong rise in soybean oil prices, soybean and soybean meal prices have been more subdued recently. By contrast, rape prices have increased significantly. In the background, rising palm oil prices are affecting the oil-stressed sector. In the price formation for the oilseed market comes movement. Course increase scope can be seen.
