AMSTERDAM, Feb 28 (Reuters) - Global soybean output this year is set for a record drop of 7.2 percent, or 19 million tonnes, mainly due to bad weather conditions in key growing areas in South America, Germany-based analyst Oil World forecast on Tuesday.
"World production of soybeans is likely to plunge by (a)staggering 19 million tonnes to only 246.5 million tonnes in 2011/12, according to our current estimates - the biggest year-on-year reduction ever registered," Oil World said in a monthly report.
It said prices of soybeans were firm in February, lifting prices of other oil seeds and oil meals.
Soyoil on the European vegetable oil market [OILS/E} rose 50 euros since February 1 to 960 euros a tonne on concerns that a drought in South America has hit the crop.
Oil World said that prices were further supported by strong demand from China where imports are estimated at 28.5 million tonnes of soybeans between April and September this year, an increase of 1.8 million tonnes from the same period a year ago.
Analysts believe growing demand from China, which accounts for more than half of the soybeans traded in the world, threatens to hit global supplies and stir concern over food inflation.
"The crop failure in South America will raise the world market's dependence on U.S. supplies," Oil World said.
"We already expect some shift to occur from now on resulting in a year-on-year increase of U.S. soybean exports by 1.6 million tonnes to 10.6 million tonnes in March/August, virtually offsetting the total decline in South American exports in that period primarily from Paraguay and Brazil."
The United States is the world's largest soybean exporter, followed by Brazil and Argentina.
"World production of soybeans is likely to plunge by (a)staggering 19 million tonnes to only 246.5 million tonnes in 2011/12, according to our current estimates - the biggest year-on-year reduction ever registered," Oil World said in a monthly report.
It said prices of soybeans were firm in February, lifting prices of other oil seeds and oil meals.
Soyoil on the European vegetable oil market [OILS/E} rose 50 euros since February 1 to 960 euros a tonne on concerns that a drought in South America has hit the crop.
Oil World said that prices were further supported by strong demand from China where imports are estimated at 28.5 million tonnes of soybeans between April and September this year, an increase of 1.8 million tonnes from the same period a year ago.
Analysts believe growing demand from China, which accounts for more than half of the soybeans traded in the world, threatens to hit global supplies and stir concern over food inflation.
"The crop failure in South America will raise the world market's dependence on U.S. supplies," Oil World said.
"We already expect some shift to occur from now on resulting in a year-on-year increase of U.S. soybean exports by 1.6 million tonnes to 10.6 million tonnes in March/August, virtually offsetting the total decline in South American exports in that period primarily from Paraguay and Brazil."
The United States is the world's largest soybean exporter, followed by Brazil and Argentina.
