MARKET DEVELOPMENT
Soybean to Palm Oil Demand Seen Rising Amid Higher Energy Use
Soybean to Palm Oil Demand Seen Rising Amid Higher Energy Use
17/09/2014 (Bloomberg) - The energy industry is set to increase consumption of palm and soybean oil over the next few months with prices “undervalued,” Oil World said.
Soybean oil consumption for biodiesel in Brazil, Argentina and the U.S. will be 3.6 million metric tons in August to December, up 600,000 tons from the same period last year, Hamburg-based Oil World said in a report. Soybean oil exports will drop by 200,000 to 300,000 tons over the same period after rising in the first seven months this year, it said.
“At current low prices we expect a noticeable increase in palm oil and soya oil consumption for energy in several countries,” Oil World said. “Malaysian palm oil exports have started to recover noticeably so far in September, a trend which is likely to continue to satisfy higher import demand for food and energy purposes.”
Soybean oil prices fell 14 percent this year on the Chicago Board of Trade amid an outlook for a record global soybean crop. Palm oil dropped 21 percent on the Bursa Malaysia Derivatives in Kuala Lumpur.
Low soybean oil prices contributed to recent record biodiesel export sales from Argentina, and that’s expected to last at least until November, Oil World said.
Soybean oil consumption for biodiesel in Brazil, Argentina and the U.S. will be 3.6 million metric tons in August to December, up 600,000 tons from the same period last year, Hamburg-based Oil World said in a report. Soybean oil exports will drop by 200,000 to 300,000 tons over the same period after rising in the first seven months this year, it said.
“At current low prices we expect a noticeable increase in palm oil and soya oil consumption for energy in several countries,” Oil World said. “Malaysian palm oil exports have started to recover noticeably so far in September, a trend which is likely to continue to satisfy higher import demand for food and energy purposes.”
Soybean oil prices fell 14 percent this year on the Chicago Board of Trade amid an outlook for a record global soybean crop. Palm oil dropped 21 percent on the Bursa Malaysia Derivatives in Kuala Lumpur.
Low soybean oil prices contributed to recent record biodiesel export sales from Argentina, and that’s expected to last at least until November, Oil World said.