European Union imports of soyabeans are set to rise in coming months but EU stocks will fall in mid-year as crushers hope for a bigger crop and lower prices next season, Hamburg-based newsletter Oil World said.
EU crushers' profit margins fell again in December after a decline in soyameal prices, the newsletter said.
But it forecast EU soyabean imports between December 2003 and August 2004 at 13.04 million tonnes, up from 12.85 million in the same period last season.
"The large South American crops which will hit the world market mainly from March/April onward and the prevailing tight situation in vegetable oils might produce an improvement in margins and a higher EU soyabean crush in this period," it said.
It forecast EU December-August soyabean crushings rising to 12.68 million tonnes from 12.40 million in the same period last season.
"But as soyabeans are mainly a meal seed, the further development of EU soyameal demand is also an important factor for crush prospects in December/August," it said.