Palm oil to raise global market share

Palm oil is likely to increase its share of the global edible oil market in 2005/06 while the overall market is likely to remain in surplus, Hamburg-based newsletter Oil World forecasts.
Global production of the eight main edible oils in October 2005/September 2006 is likely to rise to 112.04 million tonnes from 106.87 million tonnes in 2004/05, Oil World forecasts.
This would be above estimated 2005/06 global consumption of 111.60 million tonnes, up from 105.79 million tonnes in 2004/05.
Of this, 2005/06 palm oil consumption is likely to increase to 34.08 million tonnes from 32.05 million tonnes in 2004/05.
This would put palm usage only slightly behind estimated 2005/06 soyaoil consumption of 34.32 million tonnes, up from 32.40 million tonnes previously.
But it warned palm oil prices would have to remain competitive to achieve increased sales.
"Palm oil demand has shown high price sensitiveness in several key markets," it said. "The expansion of the palm oil share in the last six seasons was favoured by gradually rising price discounts, particularly against the major competitor soyabean oil." "However, as soon as the price competitiveness of palm oil had fallen much below average, its market share declined or only stagnated."