Palm Oil Prices Hit New Highs – Demand Losses Likely in Energy Sector and Food Industry…

The following are the headlines of the respective OIL WORLD WEEKLY. The full textual report plus the statistical sections can be downloaded/received each week by subscribers or purchased individually.

• Palm oil prices established new highs this week. Demand losses are likely at these high prices not only in the energy sector but also in the food industries….
• The rally in RBD palm olein (fob Mal.) by US-$ 105 per tonne during the past four weeks has created a price premium of US-$ 48 over Argentine soya oil. This is a rather unusual situation which occurred only in four periods during the past 30 years….
• We expect the price premium of sunoil relative to soya oil to widen within the next 1-3 months, due to tightening old-crop supplies as well as the outlook for reduced northern hemisphere sunflowerseed production in Aug/Oct 2007….
• Prices of palmkernel expeller have increased sharply to new highs during the past 12 months. This is explained by improved quality, the shortage of cornglutenfeed and the high prices of feed grains in the European Union….
• In India the effective import duty on palm oil has fallen below that of soya oil after the reduction of the nominal duty on crude palm oil imports from 60% to 50%….
• The price rally in coconut oil continued this week in Southeast Asia, Europe and on the world market. The tightness in coconut oil pulled up palmkernel oil prices to US-$ 815 in Rotterdam this week vs. US-$ 702 on the average of March 2007….
• EU rapeseed processing slowed down to 2.55 Mn T in Jan/Febr 2007, up only 2.8% from a year earlier compared with a year-on-year increase of 10% in July/Dec 2006….

(Cf. news of 2007-03-29.)

Source

Oil World, 2007-04-20.

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