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As Vietnam looks to rebound from the COVID-19 pandemic through economic recovery packages and loosening of restrictions, total animal feed demand is forecast to increase to meet animal production demands.

Edible oil prices have been trending higher and are now increasingly volatile due to poor market transparency and the Russian invasion of Ukraine. Post forecasts MY 2022/2023 soybean imports up to 2.8 million MT, while local soybean production remains flat.

Indonesia palm oil production is expected to reach 46 million metric tons (MMT) in 2022/23 on favorable weather and higher producer profit margins. Palm oil exports for 2021/22 are revised down from the previous update due to the Government of Indonesia’s domestic market obligation (DMO) requirement, which increased to 30 percent from 20 percent.

Due to the poultry industry’s slow recovery and sluggish consumer demand for edible oils, no significant growth in oilseed and edible oil use is forecast for 2022/23. Likewise, soybean, canola, and palm oil imports in 2022/23 are forecast to remain similar to 2021/22 levels.

Rising feed demand coupled with limited availability and higher prices for protein-rich substitutes is expected to increase China’s soybean imports to a record forecast 100 million metric tons (MMT) in Marketing Year (MY) 22/23.

Fishmeal exports reached a surprising 1.2 million metric tons (MMT) in MY 2021, the highest amount in ten years. However, production and exports are forecast to return to more normal levels at 910,000 and 896,000 metric tons, respectively.

Tunisian MY 2022/23 soybean imports are expected to reach 560,000 MT, compared to 555,000 MT in MY 2021/22. Tunisian olive oil exports are forecast to reach 135,000 MT in MY 2022/23, compared to 200,000 MT in MY 2021/22.

Turkey’s production of major oilseeds – sunflowerseeds, cottonseeds, and soybeans – in MY 2022/23 is projected to rebound from the previous year as strong prices are expected to spur increased plantings.

Post reduces its MY 2021/2022 soybean production estimate to 41 million metric tons (MMT), 4 MMT below the official USDA estimate. Despite rains in January which forestalled greater losses, high temperatures and dryness in December and early January caused considerable damage in key growing areas and depleted soil moisture reserves.

Post lowered its 2021/22 forecast for soybean planted area further, to 39.8 million hectares (ha) and soybean production to 134.5 million metric tons (MMT). From the last estimates, weather conditions have continued to worsen in key producing regions.

Only limited growth in soybean and vegetable oil imports is forecast for 2021/22. Rising prices and changes in taxation policies are hindering demand for meal from the poultry sector and capping growth in edible oil demand.

Indonesia kicked off 2022 by rolling out several market intervention policies in response to recent rising prices for cooking oil. From January 19-31, 2022, Indonesia implemented a temporary cooking oil subsidy program utilizing the Crude Palm Oil (CPO) fund, the same funding source that subsidizes the biodiesel mandate program.