Malaysian Oil Shipments Drop Significantly By 550,000 Tonnes
The Global oilseed production remains unchanged since December outlooks but lower oil shipment from Malaysia has reduced global oil exports by huge numbers. India may depend more on imports due to locust attack on oilseed crops.
Photo Credit : Reuters
Global oilseed production for the year 2019-20 has been forecast at 575 million tons. The figures have somehow remained unchanged from December with a larger soybean and sunflower seed crops offsetting declines. Especially for palm kernel, cottonseed and rapeseed. Oilseed crush is raised 190,000 tons to 497 million on higher soybean crush in China and Mexico. Oilseed ending stocks also grew nearly one million tons mainly on the larger sunflower seed crop in Russia and reductions in feed, seed and waste consumption for soybeans in Brazil.
The recent locust attack on the oilseed crops in the Indian states of Rajasthan, Gujarat and parts of neighbouring states have rung alarming signals. The Rapeseed and groundnut production may suffer from both the major producing states. This may lead to more dependence on edible oil imports for domestic consumption that has already crossed the mark of 80, 000 Cr. Lack of preparation from locust attack also raises concern amid a clear threat following a massive locust attack on the crops of neighbouring Pakistan which has severely damaged its seasonal crops.
Protein meal production is up 288,000 tons from last month to 339 million primarily on higher soybean meal production in China and Mexico. Protein meal ending stocks are nearly up by one million tons on larger soybean meal stocks in Brazil, Mexico, and Russia.
Vegetable oil production is down 560,000 tons as declines in palm oil more than offset slightly higher soybean oil production. Oil exports are reduced 550,000 tons mainly on lower palm oil shipments from Malaysia. Oil ending stocks are up slightly from December at 20 million tons but still the lowest in 5 years. The projected U.S. season-average farm price for soybeans is raised to $ 9.00 per bushel. (With Inputs from Global Agriculture Information Network).