Global oilseed, rice output to be at record high: USDA

US Department of Agriculture (USDA) said in its monthly report today that global oilseed output in 2010-11 was being seen at a record 440 million tonnes, up from 437.8 million tonnes last year, despite a likely 3 per cent drop in soybean output.

The agency said global soybean output this year was projected at 250.1 million tonnes, down 3 per cent on reduced harvest in Argentina, where farmers were shifting to grains and sunflower seed, and lower yields in Brazil.

“The Brazil soybean crop is projected at 65 million tonnes, down 3 million tonnes from 2009-10. A small increase in harvested area is more than offset by lower yields following record yields set for the 2009-10 crop,” it said.

USDA said soybean output was seen slightly higher on year in China and South America, but the increase was seen as too little to offset the drop in other producing countries.

Despite higher output, China—the largest consumer of soybean— was likely to import 49 million tonnes of oilseed, accounting for more than half of the world’s soybean trade.

The agency said global soybean exports were seen at 87.9 million tonnes, up 2.5 million from 2009-10. USDA said global wheat supplies for 2009-10 were projected 2 per cent higher with large carryover stocks offsetting a slight drop in output.

“Global 2010-11 wheat production is projected at 672.2 million tonnes, down 1 per cent from last year and the third largest production on record if realised,” it said.

The agency said larger projected production in EU, South America and West Asia was more than offset by expected declines in North Africa, South Asia, China, Canada and Australia. It pegged 2010-11 global wheat ending stocks at 198.1 million tonnes, up 4.7 million on year.

It said global rice output was projected at a record 459.7 million tonnes, up 4 per cent on year on record or near-record crops likely in Bangladesh, Myanmar, Cambodia, India, Indonesia, Philippines, Thailand, and Vietnam and higher output in US, EU and Nigeria.

In wake of higher output, USDA sees exports increasing on year in the US, Argentina, China, India, Pakistan, Thailand, Uruguay, and Vietnam. Larger imports were projected for the Middle East and Sub-Saharan Africa. It said global ending stocks were expected to increase to an eight-year high of 96.6 million tonnes, in line with record output.