USDA: Oilseeds 2019/20 below previous year's level - soybean prices little changed Palm oil rising The US Department of Agriculture (USDA) estimates global oilseed production in its December issue slightly higher than in the previous month , but still remains at approx. 22 million tonnes or 3.7% below the previous year's level. The main part of the crop decline is due to soy . A strong reduction is also evident in the global rapeseed crop. In contrast, sunflower seed has increased significantly. The remaining oilseeds have remained largely unchanged. Palm oil, however, experiences significant crop losses. The decline in soya production in the first line can be attributed to the US annual crop reduction of 120 million t to 96.6 million t this year. Cultivation and prevention as well as weather-related crop damage in the US are considered to be major causes. By contrast, with 123 millionIn Brazil, a soybean harvest is expected to hit record levels . In Argentina , however, only a below-average result of 53 million tonnes is to be achieved. On the consumption side, the USDA expects a slightly higher 303 million t. In China, given the ASP-related 40% reduction in pig populations, consumption remains at just under 85 million tonnes. Minor increases can be observed in other consumption areas. The final soybean stock level declined from 109.8 in the previous year to a good 96.4 million tonnes in the current year. The global rapeseed harvest falls from the former 72 to the current 68 million tonnes. The decline is mainly due to the extremely weak EU harvest of only 17 million tonnes and to Canada with only 19 million tonnes . India also has to cut back from 8 to 7.7 million t. Only in China is a slight improvement to 13.1 million tonnes expected. The USDA estimates that rapeseed consumption worldwide is 69.3 million.t with the result that inventories will be reduced from 8.3 to 6.6 million tonnes in the current financial year. However, inventories remain high because Canada has been left unsold due to the Chinese import ban. In addition to the market leader soybean, palm oil plays the most important role in the use of vegetable oil for price development in the oilseeds sector. The USDA estimates palm oil production at 75.7 million tonnes slightly lower than in the previous month. Nevertheless, the increases remain below average year on year. The main cause can be seen in the little changed results in Malaysia with 21 million t . In Indonesia , annual growth of 43 million tonnes is +2 million tonnes, a year-on-year decline. Palm oil consumption is expected to increase by 2 million tonnes to 74.6 million tonnes, contributing to a reduction in inventories.Increased exports to India and China as well as an increase in the blending share of diesel in Indonesia are the key drivers. Soya prices on the Chicago Stock Exchange have barely responded to the new numbers. The supply figures were in the expected range. The courses for palm oil have continued their growth course slightly subdued and are now quoted at 610 € / t.
