HAMBURG, June 4 (Reuters) - Global 2001/02 season production of the mainedible oils will not cover demand and stocks will need to be drawn down,Hamburg-based newsletter Oil World said.In its latest global supply and demand forecast, it said world productionof the seven seed oils plus palm oil is estimated to rise by only 1.9million tonnes or 2.1 percent on the season to 90.3 million tonnes."This is insufficient to cover demand," it said. "We estimate the growthin world consumption to slow down but still to rise by 3.5 million tonnesor 4.0 percent to 91.4 million tonnes.""This will require a considerable reduction of stocks and justifies theprice rally we have seen in May," it said.The newsletter sees large near-term edible oil import demand coming fromIndia and China.It added: "Large soyoil supplies in the U.S., Argentina and Brazil will beabsorbed rapidly in coming months."A major reason for tight supplies is insufficient palm oil output. This isestimated at 23.83 million tonnes up against 23.49 million tonnes lastseason.But global palm oil consumption is estimated to reach 24.40 million tonnesagainst 23.25 million tonnes last season. Inadequate palm oil output isset to keep global demand for soyoil strong up to September 2002, thenewsletter said.This will help generate sharp rises in soyoil output by the U.S.,Argentina and Brazil.

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