AMSTERDAM, Nov 21 (Reuters) - The price gap between rape oil and soy oilis expected to widen further in coming months due to a shortage ofrapeseed and demand by European consumers who are thinly covered for nextyear, traders said."The tightness is expected to last until mid-next-year. The crop is notso good and demand is strong," a Dutch trader said.The premium for rape over soy oil has jumped to 86 euros on theMay/July contract from 74 last week, while it has hovered around 45-50euros recently on the February/April position.Although the rapeseed crop is still seen rising in Europe this season,estimates have been slashed for the worldwide crop and other countrieshave been tapping the European market to make up for shortfalls elsewhere.Industry newsletter Oil World recently forecast that European rapeseedoutput would rise to 9.26 million tonnes this season from 8.87 million,but total global supplies were seen falling to 31.57 million tonnes from36.43 million, hit by bad harvests in Australia and Canada.Higher exports mean that EU rapeseed stocks will fall to a four-yearlow and lead to a reduction of EU rape crushing this season, Oil Worldadded.Reports have circulated that European rapeseed was recently exported toPakistan or India at the same time as some European farmers were sittingon supplies waiting for higher prices."Crushers are struggling to find rapeseed as most rapeseed sellers werenot willing to part from their material in the hope the tightness couldproduce even higher prices for the seed," one broker said.

THIN MARGINSNearby rapeseed prices on Matif have gained about 12 percent sinceearly October, with first-month February trading at 282.50 euros pertonne on Thursday afternoon.The tightness has cut the crushing margin to meagre levels, traderssaid. The margin on February/April was 1.60 euros per tonne and worse forMay/July at 1.28 euros, compared to more normal levels around 2.25, onetrader said."Offers for oil are very scarce because there are no crushing marginsfor the mills. Now and then they will sell something if there is a marginand if they can buy the seeds," he said.European consumers still had not arranged for much of their rape oilrequirements for next year so their purchases would support the premium,traders said."Consumers still have a good bit more buying to do. I certainly see noreason why you couldn't see that (differential) widen a bit more," a UKtrader said.Another trader said it depended on how soon consumers waded into themarket, with a scramble at the same time sending the premiums jumping, butmore orderly buying would keep them firm.Thin stocks in Rotterdam were also evidence of the tightness in themarket.Rape oil stocks eroded further this week by 989 tonnes to 22,021tonnes, the lowest level in nearly two years and down from 48,165 tonnesin September and 67,741 tonnes in May.