production stays low
The production of palm oil in Malaysia has turned out to be lower than expected, with supplies of competing oils, such as rape- and sun oil, not expected to be abundant for the near future, according to the latest report by Eccelso Limited. This could lead to increased demand for palm oil, with stocks in India apparently at a low level at the moment. However, there was a good amount of rainfall in India during July, which would have been beneficial for crops.
The sunseed crop in Russia will have been harmed by the droughts, although estimates for the harvest are around seven million tons, and record planting may keep the crop at an acceptable level, notes the report. Although the crop from the Ukraine was revised downwards, the seed crops seem to be doing better than the grains.
Russia’s sun oil production has been lower since the beginning of July, and domestic demand was still strong, which may result in declining sun oil stocks. "Availability of sun oil in Ukraine was apparently better than in Russia, since export numbers there were better than expected. In both countries, the prices of the sunseed and the oil are climbing," stated the report. Rapeseed production worldwide will be less than in 2009 and is the main reason why the price of rapeseed oil has risen lately. According to a report by Mintec this month, rapeseed oil prices have risen by 25% since the start of the year.