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Biofuel demand will generate a five percent rise in global oilseed crushings in October 2005/September 2006 on the season to 318.93 million tonnes but extra oilmeal output may be hard to sell, Hamburg-based oilseeds analysts Oil World said.
"Demand for biofuels is seen as a driving force behind the prospective sharp increase in world oilseed crushings," it said. "The increase in seed oil production should be even higher at more than six percent, which should keep vegetable oil supplies adequate."
"The anticipated growth in oilmeal production by five percent may be difficult to digest for the market and put additional pressure on meal prices."
Oil World forecasts a major rise in global 2005/06 soybean crushings to 187.22 million tonnes from 177.73 million tonnes in 2004/05.
Rapeseed crushings in 2005/06 are expected to rise to 42.97 million tonnes from 39.66 million tonnes, sunseed crushings are forecast at 25.55 million tonnes from 23.12 million tonnes.

Copyright Reuters, 2006

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