Market Report (B-Trams): In Europe, the Production harvest of the three main oil seeds – sunflower, rapeseed and soybeans – in the 2022-2023 agricultural season amounted to 31.1 million tons, which is 3% more than the previous period. Such forecasts are contained in the report of the United States Department of Agriculture (USDA).
The increase in oil seeds production in the region will occur due to an increase in sown area – from 10.6 million hectares to 11.7 million hectares. At the same time, the average yield of oilseeds in Europe will be lower than last season due to hot weather in the main production regions.
The USDA notes that sunflower and soybean plantings in the EU are now at an all-time high, and rapeseed planted areas increased for the first time after a significant decline in 2019
Also Increased output from major producers Brazil and Argentina heightened export competition for US farms, pressuring projections of US exports of soybean oil trade to be downwardly revised by 40 million bushels for the 2022/23 marketing year.
While Soybean Oil were trade at $13.8 per bushel in mid-October, hovering close to the two-month low of $13.6 hit on October 6 as fast progress in the US harvest signaled a strong supply to replenish inventories.
Commodity investors also continued to digest data from the USDA’s World Supply and Demand Estimate report.
On the other hand, expectations that imports from top consumer China will remain robust limited the downturn in prices.
