1 March, 2002 (OIL WORLD WEEKLY)- World stocks of 8 major veg. oils are estimated at 10.8 Mn T as of 1April 2002 down 0.8 Mn T on the year. As of Jan 1, global inventoriesamounted to an estimated 11.6 Mn T, down 0.5 Mn T from a year ago.-The year-on-year increase in world production is seen diminishing toabout 0.4 Mn T in Jan/March 2002.- World disappearance of 8 oils is likely to show an increase of 0.7 Mn Tthis quarter from the year before, a slowdown from an average growth of1.1 Mn T.

Soybean oil stocks will be record high worldwide at an estimated 3.3 Mn Tas of April 1. But the stocks/usage ratio at the end of this quarter isestimated to be the lowest in 2½ years. US soybean oil stocks as ofFebruary 1 were at a record 1.38 Mn T up by about 0.3 Mn T from a yearago. This will most likely mark the beginning of a gradual decline in USsoybean oil stocks. World soybean oil stocks are seen declining seasonallyby about 0.25 Mn T this quarter, mainly due to the decrease in S. Americansupplies. This reduces world stocks from a peak of an estimated 3.6 Mn Tas of early Jan (up 0.35 Mn T from a year ago) to approximately 3.3 Mn Tas of April 1 (still up 0.26 Mn T).

Palm oil stocks are being reduced this quarter both in the key exportingand importing countries. Malaysian and Indonesian stocks combined areforecast at 1.54 Mn T as of April 1, against 1.97 Mn T as of Jan 1 and1.92 Mn T a year ago. A notable slowdown in imports will also result in aconsiderable seasonal reduction in palm oil stocks in India and China.Palm oil stocks are thus seen falling below a year ago in Malaysia and toa three-year low in the rest of the world.