FAO Sees Oilseed Output Hitting New Record High

The United Nations Food and Agriculture Organization (FAO) has forecast that global oilseed production will continue to climb, heading towards a new record of 695.9 million tonnes, driven mainly by an expected increase in soybean output, according to the latest half-yearly edition of the FAO's "Food Outlook" report.

Soybeans Drive Global Growth

The report noted that global soybean production in the 2024/25 season is expected to grow for a third consecutive year, up 6.1% year-on-year to reach a new record of 422.5 million tonnes.

"The anticipated growth is largely attributable to an unprecedented crop in Brazil, driven by an expansion in planted area and a recovery in yields amid favourable weather conditions," the report said.

However, the report warned that prolonged drought in the southern growing regions of South America could lead to stagnant production in Argentina and a decline in Paraguay's crop.

In the northern hemisphere, production in the United States saw a notable recovery from the 2023/24 season, while India harvested a record crop thanks to favourable monsoon rains. Production in China remained largely stable.

Rapeseed Production Declines

Global rapeseed production fell by 5.4% in 2024/25, as a result of smaller harvests in Canada and the European Union due to poor weather conditions.

"Unattractive prices and reduced planted area, combined with adverse weather conditions across member states, pushed the EU bloc's production to its lowest level in four years," the report said.

• In Canada, a wave of heat and drought affected the growing period, resulting in a below-average harvest.
• In Australia, despite a slight decrease in planted area compared with the previous season, the country recorded its fourth-largest rapeseed crop on record.
• In China, production reached an all-time high as a result of continued expansion in planted area.
• India, meanwhile, recorded a near-record crop.

Sunflower Seed Production Falls

The report forecast a decline in global sunflower seed production in 2024/25, as a result of persistent drought in the main growing regions around the Black Sea.

• In Russia and Ukraine, drought caused yields to fall to their lowest levels in many years.
• In the European Union, production dropped significantly despite a slight increase in planted area.
• By contrast, Argentina is expected to record production close to record levels, thanks to favourable growing conditions.

About the Food Outlook Report

The FAO's "Food Outlook" report is published twice a year and provides an in-depth analysis of supply and use trends in global food markets, including cereals, oilseed crops, sugar, meat, dairy products and fish, alongside a review of ocean freight rates.