Oilseed output set to grow 7% due to boost in soya bean production in South America

The US Department of Agriculture recently released its latest Global Oilseed Report, which predicts an increase in the production of soya bean, sunflower seed and canola

- Janine Ryan

Global oilseed production in the 2023/24 season is expected to increase 7%, according to the latest Global Oilseed Report, compiled and released by the US Department of Agriculture (USDA). Global production was expected to reach 672 million tons. According to the report, the expectation of a bigger crop came on the back of an increase in soya bean production in South America, in addition to an increase in sunflower seed production in the EU, Ukraine and Russia.

The report added that canola production is likely to remain unchanged as growth in production in the EU, Canada and China were offset by a decline in production in Australia.

In terms of consumption, the USDA predicted that oilseed demand was expected to increase 4% in the coming season, led by the soya bean crush recovery in Argentina, as well as rising demand from China. “Soya bean crush and consumption are projected to account for most of the growth in global oilseed use,” the report said. Canola consumption was expected to increase marginally at 1%, while sunflower seed processing was expected to remain unchanged.

With regard to trade, it was predicted that global trade would increase by 1%. According to the USDA, the marginal increase was due to higher soya bean import demand offsetting lower canola and sunflower seed imports.

“Slowing economic growth in China and the EU coupled with growing domestic oilseed production, as well as continuing expansion of soya bean planted area in South America, is likely to pressure global soya bean prices in the coming year.