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Russian Oilseed Crushing To Hit Record Levels
Russian Oilseed Crushing To Hit Record Levels
31/03/2016 (AgriMoney.com) - Russian oilseed crushing will hit record highs next season, boosting vegetable oil exports, US government officials said.
The USDA's Moscow bureau forecast oilseed crushing to rise thanks to an uptick in production, driven by larger sunflowerseed and soybean sowings, and increasing use of higher-yield soybean varieties.
And thanks to the rapid growth in oilseed crushing facilities, processors are well placed to deal with increasing crops.
Rising production
The Moscow bureau forecast Russian production of its main oilseed crops, sunflowerseed, soybeans, and rapeseed, to rise by 4% year on year, to 13.25m tonnes.
Production of sunflower seeds, Russia's main oilseed crop, was seen rising by over 1%, to 9.2m tonnes, while soybean production was seen rising 6% to 2.8m tonnes.
"The increase in sunflower and soybean production is primarily due to a slight increase in planted area, the bureau said.
Early days
And production of rapeseed was seen soaring by 26%, to 1.25m tonnes, as farmers increasingly plant the higher yielding winter rapeseed variety.
"It is very early days for Russian spring crops such as sunflowerseed and soybeans, but these forecasts begin to give a sense of the outlook for next season," said Arthur Marshell, at the UK agricultural quango AHDB.
"If realised, higher oilseed production in Russia could result in higher Russian vegetable oil production and add to competition on EU rapeseed oil," he said.
Crushing rates rise
With higher production comes higher processing.
"Oilseeds crushing capacity in Russia has been rapidly increasing in the last 14 years," said the bureau.
"According to industry analysts, in 2015-16 oilseeds potential crushing capacity has reached 20.6m tonnes, 4.7 times more than in 2002."
Utilisation is rising, even if there is still plenty of spare crushing capacity.
The USDA Moscow bureau saw total oilseed crushing of the main crops, sunflowerseed, rapeseed, and soybeans, rising by 4% to a record 13.85m tonnes in 2016-17.
This figure includes the highest sunflower seed and soybean crushing on record, and the second highest rapeseed crushing.
Exports rise as well
And with higher processing comes higher vegetable oil production and exports.
Vegetable oil production was seen hitting 4.64m tonnes, compared to 4.64m tonnes last season.
"Vegetable oil production in 2016-17 will include 3.65m tonnes of sunflowerseed oil, 0.72m tonnes of soybean oil, and 0.45m tones of rapeseed oil," the bureau said.
Total Russian vegetable oil exports were seen at 2.16m tonnes in 2016-17.
Sunflowerseed oil exports were seen at 1.5m tonnes, the second highest on record.
Rapeseed oil exports were seen at 300,000 tonnes, while soybean oil exports were seen at a record 450,000 tonnes.
Soybean industry booms in the east
More than half of Russian soybean production lies in the country's Far East, with soybeans and soybean products winning new export markets in China after the removal of export duties last year.
Around 400,000 tonnes of soybeans will be shipped from the Far East region in 2016-17, the bureau said, making up the bulk of Russia's uncrushed oilseed exports.
"Thus, incentive to increase soybean production in the Far East is high, although weather and relatively low yields remain limiting factors," the bureau said.
Palm oil demand falls
Despite rising local production, Russia was seen remaining a net-importer of oilseeds for its domestic crushing industry, thanks to soybean imports of 2.1m tonnes, down 150,000 tonnes from the previous season.
Russian palm oil demand was seen declining, down by 9% to 700,000 tonnes.
The bureau ascribed lower palm oil demand to an "anti-palm oil campaign launched in Russian media," as well proposed labelling requirements for products containing palm oil.
The USDA's Moscow bureau forecast oilseed crushing to rise thanks to an uptick in production, driven by larger sunflowerseed and soybean sowings, and increasing use of higher-yield soybean varieties.
And thanks to the rapid growth in oilseed crushing facilities, processors are well placed to deal with increasing crops.
Rising production
The Moscow bureau forecast Russian production of its main oilseed crops, sunflowerseed, soybeans, and rapeseed, to rise by 4% year on year, to 13.25m tonnes.
Production of sunflower seeds, Russia's main oilseed crop, was seen rising by over 1%, to 9.2m tonnes, while soybean production was seen rising 6% to 2.8m tonnes.
"The increase in sunflower and soybean production is primarily due to a slight increase in planted area, the bureau said.
Early days
And production of rapeseed was seen soaring by 26%, to 1.25m tonnes, as farmers increasingly plant the higher yielding winter rapeseed variety.
"It is very early days for Russian spring crops such as sunflowerseed and soybeans, but these forecasts begin to give a sense of the outlook for next season," said Arthur Marshell, at the UK agricultural quango AHDB.
"If realised, higher oilseed production in Russia could result in higher Russian vegetable oil production and add to competition on EU rapeseed oil," he said.
Crushing rates rise
With higher production comes higher processing.
"Oilseeds crushing capacity in Russia has been rapidly increasing in the last 14 years," said the bureau.
"According to industry analysts, in 2015-16 oilseeds potential crushing capacity has reached 20.6m tonnes, 4.7 times more than in 2002."
Utilisation is rising, even if there is still plenty of spare crushing capacity.
The USDA Moscow bureau saw total oilseed crushing of the main crops, sunflowerseed, rapeseed, and soybeans, rising by 4% to a record 13.85m tonnes in 2016-17.
This figure includes the highest sunflower seed and soybean crushing on record, and the second highest rapeseed crushing.
Exports rise as well
And with higher processing comes higher vegetable oil production and exports.
Vegetable oil production was seen hitting 4.64m tonnes, compared to 4.64m tonnes last season.
"Vegetable oil production in 2016-17 will include 3.65m tonnes of sunflowerseed oil, 0.72m tonnes of soybean oil, and 0.45m tones of rapeseed oil," the bureau said.
Total Russian vegetable oil exports were seen at 2.16m tonnes in 2016-17.
Sunflowerseed oil exports were seen at 1.5m tonnes, the second highest on record.
Rapeseed oil exports were seen at 300,000 tonnes, while soybean oil exports were seen at a record 450,000 tonnes.
Soybean industry booms in the east
More than half of Russian soybean production lies in the country's Far East, with soybeans and soybean products winning new export markets in China after the removal of export duties last year.
Around 400,000 tonnes of soybeans will be shipped from the Far East region in 2016-17, the bureau said, making up the bulk of Russia's uncrushed oilseed exports.
"Thus, incentive to increase soybean production in the Far East is high, although weather and relatively low yields remain limiting factors," the bureau said.
Palm oil demand falls
Despite rising local production, Russia was seen remaining a net-importer of oilseeds for its domestic crushing industry, thanks to soybean imports of 2.1m tonnes, down 150,000 tonnes from the previous season.
Russian palm oil demand was seen declining, down by 9% to 700,000 tonnes.
The bureau ascribed lower palm oil demand to an "anti-palm oil campaign launched in Russian media," as well proposed labelling requirements for products containing palm oil.