09/05/2008 (Biodiesel Magazine) - While global oilseed ending stocks continue to shrink, production is projected to recover from last year’s decline in global oilseed production in over a decade, according to the USDA World Agricultural Supply and Demand Estimates report released Friday, May 9. The report projects global oilseed ending stocks for 2007-’08 at 56.7 million tons, down 0.5 million tons from last month’s figure. 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 tons, down 1.5 million from 2006-’07.
Global oilseed production for 2008-‘09 is projected at 423 million tons, up 32.2 million tons from 2007-’08. 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 percent of the global increase. Total foreign supplies are projected to increase by 4 percent from 2007-’08.
U.S. oilseed production is expected to be up 16 percent in the 2008-’09 crop year, with USDA projecting 93 million tons. Higher soybean production accounts for most of the increase. Peanut production is also projected higher, while production of sunflower seed, canola, and cottonseed are each projected to decline from last year. 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 percent from 2007-’08 despite higher planted area. Most of the production gains are offset by sharply lower beginning stocks.