Global supplies of vegetable oils are set to expand in the next season as production made from palm climbs to a record and output from soybeans and sunflower seed jumps, Oil World said.
Production of eight vegetable oils may climb to 159.5 million metric tons in the 2013-14 season starting Oct. 1, up 3.4 percent from a year earlier, the Hamburg-based researcher said in an e-mailed report today. Output of palm oil, the world’s biggest oil used for cooking and in biodiesel, may rise 4.4 percent from the previous season to a record 58.2 million tons amid higher supplies from top growers Indonesia and Malaysia.
“World production of the eight major vegetable oils is set to increase noticeably,” Oil World said. Output is seen “exceeding projected consumption and resulting in a recovery of world stocks,” according to the report.
Global production of soybean oil may total 44.03 million tons in 2013-14, up from 42.27 million tons a year earlier, as U.S. crops recover from last year’s drought, Oil World said. Sunflower oil output may be 14.68 million tons, up from 13.58 million tons in the previous season.
Total world vegetable oil consumption may rise to 158.7 million tons, up 3.1 percent from a year earlier, Oil World said. Inventories at the end of the 2013-14 season may increase 2.6 percent from a year earlier to 21.4 million tons.
Increasing demand for palm oil sent global stockpiles down by 1.7 million tons from the end of December through June, Oil World said. While production in Malaysia was lower than expected from April through June, output probably will start to increase seasonally beginning this month, according to the report.
Production of eight major oilseed meals may be 277.98 million tons, up 3.3 percent from a year earlier, Oil World said. Output of soybean meal used for livestock feed may be 186.9 million tons, up 4.2 percent.