Global Oilseed Production Projected at 722.2 Million Tonnes

Mumbai: In its latest monthly (October) report, the US Department of Agriculture (USDA) has projected global oilseed production for the 2026-27 season at 722.2 million tonnes, which is approximately 1.5 million tonnes lower than the 723.46 million tonnes estimated in the September report. Similarly, the estimate for global ending stocks of oilseeds for the 2026-27 season has been revised downward from 146.64 million tonnes to 146.31 million tonnes.

On the other hand, the USDA has raised the projection for total global trade in oilseeds for the season under review from 221.16 million tonnes to 221.62 million tonnes. Likewise, the estimate for global oilseed consumption has been slightly increased from 611.62 million tonnes to 611.89 million tonnes, driven by expected increases in consumption in certain countries.

In the edible oil category, the USDA has lowered its projection for palm oil production in Indonesia by 2.2 million tonnes, setting it at 45 million tonnes. According to the report, dry weather conditions have persisted there for several months, and the impact of El Niño is expected to continue. This could lead to a decline in oil palm productivity. The global production forecast for Crude Palm Oil (CPO) has also been cut by 2.5 million tonnes.

Global ending stocks are projected to fall to their lowest level since the 2017-18 season. Total global production of vegetable oils—including palm oil, soybean oil, sunflower oil, and rapeseed/canola oil—is projected to decline and settle at 243.16 million tonnes for the 2026-27 season; this figure is significantly lower than the September report's estimate of 245.36 million tonnes.