Edible oil prices set to climb, expert says
24/09/2007 (Commodity Online), PANAJI - Edible oil prices will go up further due to reports of lower oil seed production, says industry expert Thomas Mielke, editor of the Oil World publication.
While speaking at conference here Mielke said world over oilseed output is expected to fall. The global output will be 391 million tonnes in October 2008, 13 million tonnes less than it previous year.
Lower production in Australia, China, Europe and North America are the main cause, Mielke said. The projected decline in world production “of 10 oilseeds by around 13 million tonnes is unprecedented," he said.
The oilseed output had been rising globally since 1995. In 1995 production was 257 million tonnes and it increased gradually to 404 million tonnes in 2007.
Another reason he cited fro the price hike was the use of palm and soy oils for production of biofuels. Palm oil, mostly produced in Malaysia and Indonesia, was at a record high of 2,764 ringgit per tonne in June. Its rival soyoil touched a 23-year high on the Chicago Board of Trade this year.
Mielke said global soybean output was expected to fall by 14 million tonnes to 223.6 million tonnes next year even as demand for soyoil and meal was likely to rise.