Global Vegetable Oil Exports Growth to Slow in 2016 – Oil World
The growth of global exports of vegetable oils is poised to slow as the season progresses into 2016 as supplies are not expected to meet demand, according to Hamburg-based Oil World.
Total shipments of vegetable oils, including soybean oil and palm oil, are expected to increase by 2.3 million tons in the 2015/16 season – a notable drop below the ten year average of 3.1 million tons, due to El Niño cutting into palm oil production, and Indonesia and Brazil diverting more palm and soy supply toward the production of biodiesel.
Overall global vegetable oil exports will increase to 72.8 million tons. Of this volume, soybean oil exports will increase 10% to 12.9 million tons, palm oil exports will increase 2.1% to 48.3 million tons, sunflower oil exports will jump 6.6% to 7.88 million tons, but rapeseed oil exports are projected to buck the trend and fall by 10% to 3.7 million tons.
For the near to medium term, sizeable stockpiles of vegetable oils in India and other key global importers as well as ‘large’ inventories of palm oil in Indonesia and Malaysia should keep users in sufficient supply, meaning that shortages are not expected to be felt until the first quarter of 2016.