Global soybean consumption will drop about 3 million metric tons in 2012-2013 as record prices curb demand for the oil made from the oilseed for food and biofuel, Thomas Mielke, executive director of Oil World, said.
“Higher prices of oils have affected consumption in the food sector but a larger impact is stemming from a slowdown in biodiesel sector,” according to a presentation by Mielke handed out an industry conference in Mumbai today. “The growth rates in usage of oils and fats in biodiesel consumption are going to slowdown further in 2013.”
The rally in soybean meal prices have cooled demand among livestock producers and poultry meat production is already declining, Mielke said. Soybeans rose to a record $17.89 a bushel also on Sept. 4.
Import demand will shift to more attractively priced palm oil next year, he said. “This will result in seizable increase in exports from Indonesia and Malaysia, reducing their stockpiles,” he said.