USDA Outlook: Oilseeds

Foreign production is reduced 4.4 million tons from last month. Soybean
production for China is projected at 15.2 million tons, down 0.4 million due to
dry weather in the northeastern producing area.

Rapeseed production is
reduced for Canada and EU-27. Hot, dry weather in Canada and wet harvest weather
in EU-27 have reduced yield prospects.

Crop projections for both remain
above last year’s levels due to sharply higher planted area.

Global
sunflowerseed production is reduced 8% this month due to sharp reductions for
Russia, Ukraine, and EU-27. Production estimates are reduced due to lower
planted area in Russia and hot, dry July weather in Ukraine and EU-27.

US
changes for 2006/07 include higher soybean exports and crush. Exports are raised
10 million bushels. Crush is raised 15 million bushels reflecting stronger-than-
expected domestic soybean meal disappearance and exports.

With higher
use, carryover drops 25 million bushels to 575 million bushels. The
season-average soybean price is raised 5 cents per bushel to $6.40 per
bushel.

US oilseeds
US oilseed production for 2007/08 is
projected at 80.2 million tons, down fractionally from last month as lower
cottonseed production is nearly offset by higher peanut
production.

Soybean yields are forecast at 41.5 bushels per acre, 1.2
bushels below last year.

The first survey-based forecast of US soybean
production is 2.63 billion bushels, unchanged from the July projection, and 563
million bushels below last year’s crop.

Soybean stocks are projected at
220 million bushels, down from 245 million last month reflecting reduced
carry-in.

Soybean crush remains unchanged as reduced soybean meal export
prospects are offset by increased domestic soybean meal disappearance. Soybean
oil stocks are raised this month, reflecting an increase in beginning
stocks.

Projected price unchanged
The
projected US season-average soybean price is unchanged at $7.25 to $8.25 per
bushel. Projected prices for soybean meal and soybean oil also are unchanged at
$200 to $230 per short ton and 32 to 36 cents per pound,
respectively.

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