HAMBURG (May 25 2005): Global 2004/05 soyaoil output will rise to 32.57million tonnes against 30.86 million tonnes in 2003/04, Hamburg-basednewsletter Oil World forecasts. This would raise season ending stocks onOctober 1, 2005, to 3.02 million tonnes from 2.73 million tonnes onOctober 1, 2004, it estimated. "Soybean oil production is back on a steepgrowth path, following a setback by 200,000 tonnes in 2003/04 which wasdue to unusually low soyabean crops," it said. Soyoil stocks were alsorising but were still down on the year, it said. Global stocks on April 1were estimated at 2.67 million tonnes from 3.14 million tonnes the sametime in 2004. It estimates world July 1 stocks will rise to 2.96 milliontonnes from 3.05 million tonnes on July 1, 2004.

"Our estimate of rising stocks partly reflects disposal problems,primarily in the US, where labelling of transfatty acids is required fromearly 2006 onward which is to the disadvantage of soyaoil," it said.

"US demand for soyaoil declined due to low supplies and high prices in2004 and is now curbed on account of adjustments head of the newregulations."