News
28.01.2010
Lower supplies to cut sunflower seed use: Oil World
Lower than expected sunflower seed crops will cut global sunseed crushings in coming months, raising sunflower oil prices, Hamburg-based oilseeds analysts Oil World forecast on Tuesday. Oil World now forecasts the global 2009/10 sunseed crop will fall to 30.84 million tonnes from 34.32 million tonnes in 2008/09.
Ukraine's 2009/10 crop is forecast to fall to 6.55 million tonnes from 7.02 million tonnes in 2008/09, Russia's to 6.20 million tonnes from 7.30 million tonnes and Argentina's to 2.30 million tonnes from 2.90 million tonnes, it estimates.
This will enforce a cut in world sunseed crushings by about 3.4 million tonnes on the year in January-September 2010, it forecast. "This represents a dramatic change considering that processing still increased by 0.5 million tonnes from a year earlier in October-December 2009 after a staggering boost by 4.3 million tonnes in January-September 2009," it said. The harvest reduction is likely to raise sunoil prices in coming months, it said.
The transition of the global sunoil market from ample supplies to scarcity is reflected in the widening of price premiums of sunoil over soyaoil and rapeseed oil in Europe to $50 to $60 per tonne in past weeks, it said. "This premium will widen further to ration (sun oil) demand successfully in coming months," it said.
Reuters
