U.S. Soybean production is projected to be 78.7 million tonnes, reflecting the decreased planted and harvested area in the June acreage projections, according to the latest report from USDA. U.S. soybean stocks for 2005-06 could reach 5.72 million tonnes reflecting reduced supplies and higher projected use. USDA also said supplies are reduced due to lower beginning stocks and slightly lower than previously expected production. Soybean crush is expected to improve prospects for soybean meal use. Soybean oil production, exports, and stocks will be higher than previously expected due to a higher soybean crush, according to USDA.

U.S. oilseed production is projected at 89.1 million tonnes. Reduced soybean, cottonneseed, and sunflowerseed production likely will be only partly offset by higher peanut and canola production. USDA projects U.S. oilseed ending stocks for 2005-06 to be 7 million tonnes.

U.S. soybean crush for 2004-05 could reach 46 million tonnes, reflecting stronger-than-expected growth in domestic soybean meal use through the third quarter of the marketing year, USDA said. Supply estimates and reported use through May coupled with the June 1 stocks estimate indicate a higher residual for 2004-05. Ending stocks for 2004-05 are projected to be 7.89 million tonnes.

Global oilseed production for 2005-06 could be 378.7 million tonnes, USDA said. Foreign production likely will offset a small reduction in production for the United States. Global oilseed production for 2004-05 is will likely be lower than previously expected reflecting the government of Brazil’s crop estimated of 51 million tonnes.

Mississippi Lock Overhaul Approved By House

The House of Representatives voted last week to build seven locks to speed barge shipments of grains, petroleum and other goods on the upper Mississippi and lower Illinois rivers. The development came as part of funding for a waterways bill that passed 406-14. The measure now moves to the Senate. Proponents said the new 1,200-foot locks would ease congestion, encourage farm exports and lower the cost of shipping bulk goods. They would be built alongside existing 600-foot locks. The Mississippi River locks would be built between St. Louis and the Iowa-Missouri border at Quincy, Illinois, at Canton, Saveron, Clarksville and Winfield, Missouri. The Illinois River locks would be built near LaGrange and Peoria, Illinois.

The project’s critics question why the federal government would pour so much money into the upper Mississippi at a time when traffic is declining. Between 1990 and 2004, traffic through the five major locks dropped 40 to 45 percent, partly because Midwestern growers sold an increasing amount of corn to nearby ethanol plants and shipped some goods by rail out West. Delays on the river are declining partly due to less traffic. The Corps has pushed for the project, suggesting that under the most likely scenario, river traffic between 2000 and 2025 would increase 30 percent.

China’s Soybean Imports Increase

China imported 12.01 million tonnes of soybeans in the first half of 2005, up 33.6% on year, China’s customs department said last week. However, the Customs General Administration did not provide import data for the month of June. But, earlier data from the customs department shows the country imported 9.35 million tonnes of soybeans in the January to May period, indicating that imports in June totaled 2.66 million tonnes, up sharply from 1.46 million tonnes in June 2004.

Johanns Meets With Chinese Officials On Trade Issues

Agriculture Secretary Mike Johanns last week announced progress with China on several key market access fronts, following meetings here with Chinese officials. In his first visit to China as Secretary of Agriculture, Johanns took part in the meeting of the U.S.-China Joint Commission on Commerce and Trade, a bilateral forum for resolving trade issues, which was also attended by U.S. Trade Representative Rob Portman and Commerce Secretary Carlos Gutierrez.

Johanns commended the China’s efforts to increase approvals of biotech crops and noted the willingness of the U.S. to work with China to promote a regulatory system based on sound science to expedite future approvals. “‘Cooperation is essential in any trading relationship,”‘ said Johanns. “‘ A great example of our cooperative efforts is in the area of biotechnology where we are working together on the development and use of agricultural biotechnology that benefits farmers and consumers alike.

Indian Oilmeal-Based Feed Demand Set To Surge

Rapid growth in India’s meat and dairy sectors should push up demand for animal feeds to 68 million tonnes by 2010 from the from the present 42 million tonnes, according to D.P. Khandelia, President of the Solvent Extractors’ Association (SEA) of India. Speaking at an industry seminar in last week, Khandelia said the use of high-quality grade oilmeal in compound feeds would help India meet growing demand for animal protein both at home and abroad.

The country has a large population of cattle, but output per animal is currently well below international standards. As a result, Khandelia believes India should adopt a national agriculture policy to boost India’s livestock and aquaculture sectors,

India’s agriculture sector contributed 24.2% of India’s total GDP last year, of which 5.9% was contributed by the livestock sector. Dairy alone accounts for about 2% of total GDP, a figure that should surpass 5% by 2010.

In another address, Kerala Province Chief Minister Oommen Chandy said efforts to popularize oilmeal usage in feed are already helping to boost the dairy sector, while at the same time encouraging coconut cultivation in the state.

Soy Complex Higher On Hot, Dry Weather Forecast For Midwest