HAMBURG (July 23 2003) : Global 2003/04 production of the seven mainoilseeds is likely to rise to 340.4 million tonnes from 319.2 milliontonnes in the previous season, Hamburg-based newsletter Oil World said.

"For July 2003/June 2004 we expect downward pressure in new crop soybeanfutures prices if current world oilseed production prospects materialise,"it said.

Crushings of the seven main oilseeds are expected to increase by an"impressive" 16 million tonnes to 287.0 million tonnes in 2003/04, thenewsletter forecast.

"This is needed to supply oil demand but creates a surplus in meals," itstressed.

Expected very low oil stocks in early October 2003 and a likely expansionof demand will keep the global oils and fats demand relatively tight inthe new season and support oil prices, it said.

Global soybean crushing are likely to rise to 178.50 million tonnes from169.37 million tonnes in the previous season.

"Since soybeans are primarily a meal seed this is likely to result in asurplus of soybean meal," it added.

This will mean reduced meal prices will be needed to stimulate sufficientdemand, it said.-Reuters