Global exports of palm oil may decline this season for the first time in 16 years as makers of biofuel and cooking oil substitute sunflower and soybean oil, Oil World said.
Palm oil exports will total 43.75 million metric tons in the 2013-14 season that began Oct. 1, down 1.1 percent from a year earlier, the Hamburg-based researcher said in an e-mailed report. Shipments from top-producer Indonesia will decline 0.8 percent to 21 million tons, while exports from Malaysia, which ranks second, will fall 2.2 percent to 18.1 million tons.
“Palm oil has lost attractiveness in the energy markets of Europe and other countries, which resulted in a considerable slowing-down of purchases,” Oil World said. “Also, in the food markets palm oil has lost market share to sunflower oil and partly to soya oil. This demand shift was also triggered by the deteriorated price attractiveness of palm oil.”
Prices for palm oil climbed 10 percent since Oct. 1 on Bursa Malaysia Derivatives amid declining stockpiles in Malaysia and Indonesia and prospects for slower production growth. Soybean oil futures were little changed on the Chicago Board of Trade in the same timeframe.
Global palm oil output will increase 4.8 percent to 58.5 million tons in the 2013-14 season, compared with a 6.6 percent increase the previous year, Oil World said. Production of soybean oil will rise 5.5 percent from a year earlier to a record 44.2 million tons. World output of sunflower oil will rise as much as 9.7 percent to 8.5 million tons, according to the report. Rapeseed oil output will increase 2 percent to a record 25.4 million tons.
World production of 12 major oilseed meals, used in livestock feed, may climb 4.6 percent to a record 303.71 million tons, Oil World said. Soybean meal and sunflower seed meal will account for “the bulk of the year-on-year increase,” with production totaling 187.82 million tons and 16.8 million tons, respectively.
(Source – http://www.blackseagrain.net/novosti/world-palm-oil-exports-seen-falling-for-first-time-in-16-years)