Feb. 26 (Bloomberg) -- European Union usage of soybean meal, an animal-feed component, is forecast to climb in the first nine months of the year as supply from South America increases, according to Oil World.
Soybean-meal use may climb to 24.2 million metric tons in the period from January through to September from 22.9 million tons in the year-earlier period, the Hamburg, Germany-based industry researcher wrote in a report today.
Rising soybean prices last year made use of meal extracted from the oilseed less attractive to EU livestock producers, prompting them to use more meal from soybean seeds and palm kernels, according to Oil World.
“We expect the dominance of protein feeds other than soya meal to prevail also in early 2013 before soya-meal supplies become more ample from March-April onward,” Oil World wrote.
Total use of meal from eight oilseeds in the EU is predicted to decline to 40.1 million tons in the nine-month period from 40.3 million tons, according to the researcher.
“On the assumption that sufficient soybean quantities are delivered from South America in a timely fashion, we currently project soya meal to rebound more or less sizably in April- September,” Oil World wrote.
Consumption of sunflower meal will drop to 4.66 million tons in the January-September period from 5.54 million tons, rapeseed-meal use will decline to 8.61 tons from 9.11 tons and usage of palm-kernel meal will slip to 2 million tons from 2.1 million tons, Oil World predicted.
The use of sunflower meal jumped 31 percent last year and consumption of palm-kernel meal advanced 26 percent, with both gaining market share as prices for soybean meal increased at a faster pace, according to the report. Soybean-meal use dropped to 29.9 million tons from 31.7 million tons in 2011.
“The prospective downtrend of soya meal prices may be tempered by the large number of market participants waiting for lower prices,” Oil World wrote. “If the recovery of soybean crushings and exports from South America turns out even slower than currently estimated, it will also become supportive for soybean and soya meal prices in coming months.”
--Editors: Claudia Carpenter, Alastair Reed