Turkey.Oilseeds and Products Update June 28, 2016

Highlights

Turkish soybean area and production for MY 2016 are now estimated about 33,000 hectares and 120,000 MT, respectively. The recent production bonus increase is expected to have positive effects on second crop soy planting. Turkey imported 1.36MMT soy in during the first eight months of MY 2015/16, of which the United States supplied 397,000 MT. Turkey also imported a total of 332,000 MT soymeal during the first seven months of MY 2015/16, of which 70,000 MT were U.S. soymeal.

Soybean PSD

Soybean

Production

In Cukurova region where ninety-five percent of the local soybean crop is planted, soybean has to compete with wheat, corn and cotton. In recent years, attractive returns on peanuts also created an alternative to soybean planting in the region.

The GOT has been encouraging the increase of oilseeds by higher production bonus payments. Oilseeds other than soybeans had benefited from these increases during the last six years but finally in April 2016, the GOT increased the soybean production bonus by about twenty percent to TL 600 (US$ 200) per ton for MY 2016 crop. The announcement was late for the first crop soy but it is expected to have some effects for second crop soy planting in the region. Accordingly, MY2016 domestic soy planting is now estimated at 33,000 hectares and 120,000 MT.

Consumption

During 2015 Turkish poultry industry had to face two major challenges: biotechnology related feed items import issues and avian influenza cases. Approvals of four new soy and nine corn varieties provided some relief to the imports of these commodities. However, in 2016 the industry is facing new challenges such as slow exports due to security problems in the border areas. The industry is showing great efforts to find new routes to the main export markets and also searching new export markets. Due to the above issues domestic consumption of soybean expected to go up moderately to 2.3 MMT in MY 2015.

Trade

The recent approval of additional genetically engineered soy and corn traits eased imports somewhat and assisted to inflow of these products. Total soybean imports during the first eight months of MY 2015 were 1.37 MMT, slightly less than last year. Ukraine become the leading supplier with 546,000 MT followed by the United States with 397,000 MT. Ukraine benefited from geographical proximity and favorable pricing. Canada (70,000 MT), Paraguay (44,000 MT) and Brazil (33,000 MT) were the other leading suppliers.

Soybean meal PSD

Soy exports were about 40,000 MT during the same period. The United States was the leading destination with 33,000 MT. Export to United States is reportedly organic soybeans. N. Cyprus (3,200 MT), Canada (2,000 MT) and Iraq (1,400 MT) were the other destinations.

Soybean meal

Production

On the contrary to the early season situation the recent dramatic world price increases of soymeal made soybean imports more attractive and increased domestic crushing margins. MY 2015 soymeal production is now estimated about 855,000 MT compared to the early season estimate of 836,000MT. Provided that crushing margins continue as they are, domestic soymeal production is expected to go up in the coming season as well since crushers will continue to utilize the large capacity that they have.

Consumption

Domestic consumption is increasing but at a slower rate. Poultry meat and eggs producers who are facing difficulties in exports require less meal. Soymeal consumption in MY 2015 is projected to be about 1.35 MMT, up only marginally compared to a year ago.

Trade

Turkey has imported a total of 322,000 MT of soybean meal during the first seven months of MY 2015. The United States supplied 70,000 MT. Argentina (207,000 MT), Brazil (40,000 MT) and Ukraine (24,000 MT) were the other leading suppliers.

Turkey exported about 25,000 MT of soy meal during the same period. Iraq (14,000 MT), N. Cyprus (9,000 MT), and Azerbaijan (1,000 MT) were the main destinations.

Soybean oil

Main soy oil usage in Turkey continues to be poultry feed and industrial use since the biosafety law forbids soy oil to be used in food if it is produced from biotech soybeans.

Due to large domestic crushing for industrial use, Turkey did not import soy oil during the first seven months of MY 2015. Exports during the same period however were about 7,000 MT of which 5,000 MT were to Iraq and 1,000 MT to N. Cyprus.

Soybean oil PSD