Mumbai: Global output of major oilseeds in 2007-08 is projected at 391 million tonnes (mt), down from previous years record 405 mt, according to the latest US Department Agriculture (USDA) compilation of world agricultural supply and demand estimate. The fall can be attributed mainly to a fall in the US soyabean output which is slated to hit a recent low of 71.5 mt, from the previous years record 86.8 mt. China, too, is set to face a decline of 1 mt to 15.2 mt. China's soyabean imports are forecast to rise to a new high of 33.5 mt from 28.7 mt in 2006-07. For 2007-08, USDA has forecast Brazil's soyabean output at 61 mt (59 mt) and Argentina at 47 mt (unchanged). World vegetable oil production is forecast at 125.8 mt, up from 121.2 mt of 2006-07.
On the consumption side, USDA has forecast 125.9 mt for 2007-08 suggesting output and consumption will remain in more or less balance. Forecast consumption for 2007-08 represents a growth of 4.6 mt from the previous year. From 115.1 mt in 2005-06, world vegetable oil consumption expanded to 121.2 mt the following year, representing an increase of 6.1 mt. While diversion of vegoil for biodiesel output sucked out a significant quantum of oil that would otherwise have been available to the market in the normal course, the extraordinary price spurt was not justified by market fundamentals.
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