Prices of Rape Oil and Rapeseed Now Declining

The following are the headlines of the respective OIL WORLD WEEKLY.

• Most recent decline in prices of rape oil and rapeseed is due to reduced consumption of biodiesel in Germany. The profitability of biodiesel production has been squeezed recently by declining energy prices, relatively firm vegetable oil prices and the 9 cents/litre energy tax introduced in Aug 2006…
• World palm oil production and stocks were about 0.2 Mn T below our estimates in the Oct/Dec 2006 quarter on account of Malaysia. Indonesian palm oil production reached an estimated 4.3 Mn T in Oct/Dec 2006, exceeding Malaysian output of 4.1 Mn T…
• Owing to favourable, partly excellent weather, we have raised our Brazilian soybean crop estimate to a record 56.0 Mn T, up by 0.5 Mn from last year, despite a decline in the area by about 1.1 Mn ha. Argentine crop raised to 43.5 Mn T (vs. 41.1 Mn T)…
• The USA has cut exports of corn meals to the EU due to lacking approval of a new GM corn variety in the EU. In Sept/Nov 2006 US exports of cornglutenfeed and meal to the EU fell by 26% to only 509 Thd T…
• US exports of soya oil rose sharply to an estimated 249 Thd T in Oct/Dec 2006, up by 95 Thd T on the year. This followed from tight South American supplies…
• EU rapeseed production is set to increase sharply to a record of around 18.0 Mn T in 2007, up from 15.9 Mn T last year. We estimate the total area at 5.65 Mn ha, up steeply by 0.4 Mn from one year. The crop is still vulnerable to frost damage in coming weeks…

(Cf. news of 2006-12-07.)

Source

Oil World, 2007-01-12.

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