7/15/04 (Oilmandi) - The expectation for the 04-05 U.S. sunflower crop isthat it will need to be rationed for both confections and oil types. Oldcrop confection prices increased last week and it appears that most of theoil-type needs are covered through the summer. The mandated labeling fortrans fatty acids is one crop year away. Some companies have already madethe switch to non-hydrogenated oils but there remain many that have not.The message to these food companies is that they need to start theplanning now to insure supplies in 18 months. Of the oils that can beutilized without hydrogenation, only sunflower and specialty canolas canincrease production. Cotton and corn oils are by-products of otherindustries. Consumer groups have pegged trans fatty acids as a healthhazard and have asked FDA to remove trans fatty acids from the ‘generallyconsidered safe’ status. Trans fatty acids have been compared to the ‘nicotine of the food industry’ implying that law suits are probable. It isassumed that this issue is only going to increase in importance.