Global soybean demand is likely to exceed output by about 4 million mt in 2016/17, the the German Union for Promoting Oil and Protein Plants (UFOP) said Thursday.
It forecast consumption of soybeans in 2016/17 up 10 million mt at 328 million mt, while output was estimated to rise 8 million mt to a record high of 324 million mt.
The year-on-year jump in forecast demand was largely due to higher estimated consumption in Brazil and India. In recent years, China and India have been the key drivers in boosting demand, UFOP said.
But despite the expected surge in demand, there will be no shortage of soybeans in 2016/17 due to substantial stocks, it said.
Although stock levels are expected to drop to 68 million mt from 74 million mt, the lower forecast level would still be the fourth highest on record.
Global soybean oil stocks hit a record high of 78 million mt in 2014/15, although they have since declined steadily.
