Vegoils Global vegetable oil export growth set to slow as supplies ebb

by **Cals** Wed 21 Oct 2015, 04:14

Vegoils

[size=28]Global vegetable oil export growth set to slow as supplies ebb

By Bloomberg / Bloomberg | October 20, 2015 : 10:13 PM MYT

LONDON (Oct 20): Global exports of vegetable oils will grow at a slower-than-average pace in the 2015-16 season that started this month, as supplies are forecast to fall short of demand, according to researcher Oil World.

Shipments of four main oils including those made from soybeans and palm will rise by 2.3 million metric tons, less than the past decade’s average of 3.1 million tons, the Hamburg-based researcher said in a report. Global trade growth will slow as the El Nino weather pattern cuts palm oil production and Indonesia, the top producer, uses more to make biodiesel.

"Export supplies of four major oils are potentially insufficient to satisfy demand, with many importing countries forced to shift from processing of rapeseed to soybeans, implying correspondingly lower vegetable oil production," Oil World said. "Poor oilseed crops in key importing countries like China and India will raise their vegetable oil import demand."

Global exports of vegetable oils will rise to 72.8 million tons as soybean oil exports climb 10% to 12.9 million tons, the researcher estimated. Palm-oil exports will gain 2.1% to 48.3 million tons, as sunflower-oil shipments increase 6.6% to 7.88 million tons. Trade in rapeseed oil will slump 10% to 3.7 million tons.

Brazil, the world’s top soybean exporter, will also use more oil to make biodiesel, Oil World said.

"Relatively” big stockpiles of vegetable oils in India and other importing nations will keep supplies at adequate levels in the near to medium term, Oil World said. Inventories of palm oil are still “large” in Malaysia and Indonesia as well, it said.

"This probably means that first signs of physical shortages will not show up, before the first quarter of 2016," according to the researcher.
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