Oilseed meal demand to rise 5%

World demand for oilseed meal used in livestock feed may rise over the next year because of record prices for wheat and corn.

Demand may rise to 268.6 million tonnes in the year to September 30, 2008, from a likely 256.32 million tonnes this year, Thomas Mielke, a director at industry consultant OilWorld, said at a conference in Goa today. Soybean meal demand may rise 6 per cent to 166 million tonnes, he said, likely extending a rally in soybean prices. The oilseed is up 75 per cent in the past year after US farmers said they would plant the fewest acres in 12 years. Wheat prices have more than doubled in the past year and reached a record $9.1125 on September 12.

"With wheat at $9 a bushel and corn at high prices, demand will be driven by the need for alternative feedmeal,'' he said.

US farmers will harvest 2.618 billion bushels of soybeans this year, less than the 2.625 billion forecast in August, the government said earlier. Production is forecast to fall 18 percent, after farmers cut planted acreage 15 per cent to sow more corn.