27/03/2013 (Bloomberg) - Global rapeseed production may climb to a record as outlook improved for crops in Australia, the European Union and India, Oil World said.

World production in the 2012-13 season may be 62.05 million metric tons, 800,000 tons more than previously estimated and 2.7 percent higher than a year earlier, the Hamburg-based researcher said today in an e-mailed report.

“New-crop prospects are currently favorable” in the EU and former Soviet Union, Oil World said. “Winter rapeseed plantings were expanded and hibernation was generally very good. If weather remains favorable, we can expect a sizable increase in rapeseed production in the European Union and Ukraine.”

Oil World boosted its outlook for Australia by 500,000 tons to an all-time high of 3.7 million tons. EU rapeseed output, the world’s largest, will be 100,000 tons higher than the previous estimate at 19.24 million tons, equal to a year earlier. India’s production will be 24 percent higher than a year earlier at 7.2 million tons, according to the report.

World exports of rapeseed and canola in the first half of this year may be 5.58 million tons, down from 6.69 million tons a year earlier because of lower shipments from Canada, the world’s biggest shipper, Oil World said. Global production of rapeseed oil for all of 2012-13 ending in September is forecast at 24.1 million tons, higher than previously estimated, it said.

Oil World also raised its production forecast for sunflower seed in 2012-13 to 36.3 million tons, second only to last year’s record. Sunflower seed oil output may be 13.8 million tons, bigger than the previous forecast and down from 15.1 million tons produced a year earlier.

Palm Domination
Palm oil production may be a record 55.7 million tons in 2012-13, with 27.9 million tons coming from Indonesia and 19.7 million tons from Malaysia, Oil World said. Palm oil exports during the year will account for 58 percent of total world shipments of 17 major oils and fats, up from 56 percent two years ago, it said. Palm oil will make up 90 percent of the projected demand growth for the sector this season because of insufficient supplies of soybean oil, sunflower oil, rapeseed oil and olive oil, it said.

“Palm oil has become the dominant oil in recent years, surpassing soya oil,” Oil World said. “The world market will become more dependent on palm oil in the second half of this season owing to reduced supplies of other oils and fats.”