Total European Union (EU) production of three major oilseeds is expected to rise by 6% in marketing year (MY) 2023/24, according to a USDA report.
This increase is attributed to 2% more planted area and higher average yields, according to the USDA. The increase in rapeseed and sunflower area exceeded the reduction in soybean area, according to a September 11 report from the European Union: Oilseeds and Products.
Furthermore, “compared to the previous year, in which heat and drought reduced the productivity of especially late crops, the production of soy should increase by more than 16%, the sunflower at 12% and rapeseed at almost 2%,” said the USDA.
Forecasts indicate positive trends in the consumption of vegetable oils
Crushing of soybean and sunflower seeds is also expected to grow, according to the European Union: Oilseeds and Products report.
“Crush margins are favorable and there is a growing demand for vegetable oils in the food industry sector. In particular, dietary consumption of soybean oil and sunflower oil – replacing palm oil – is expected to increase significantly,” the USDA said.
Total feed use in the EU is forecast to remain stable in 2023/24, according to the report.
“A recovering poultry sector should use slightly more soybean meal, which will offset declines in rapeseed and sunflower meal driven by a declining livestock sector,” the USDA said.
USDA's latest report updated several sections of the annual EU Seed and Oil Products report published in April.
Source: Oils & Fats International
