7/15/04 (Oilmandi) - The US Department of Agriculture (USDA) has forecasta record oilseed output of 379.1 million tonnes (mt) for 2004-05, aremarkable 43.2 mt increase over 335.9 mt estimated for 2003-04.A significant part of the global production increase will come fromsoyabean. Forecast of this crop is placed at a new high of 224.6 mt,versus weather and disease-affected 189.1 mt in 2003-04.All the three major origins the US, Brazil and Argentina are forecast toharvest record soyabean crop, with higher acreage driven by attractiveprices over the last eight months.

Soyabean output forecast for the US is 2.94 billion bushels, equivalent to80 mt as against 65.8 mt of the previous year. South American soyabeancrop is set to cross the 100 mt mark in 2004-05. Brazilian output isprojected at a record 66 mt (52.6 mt) and Argentina at 39 mt (34 mt).

In anticipation, prices of oilseeds and vegetable oils have begun tosoften. Long liquidation at the bourses has imparted a certain weakness tothe prices.