Rising biofuel demand means EU rapeseed oil imports are likely to rise more strongly than expected this season while the EU will increasingly use soyaoil for fuel, Hamburg-based oilseeds analysts Oil World forecasts.
The EU could import around 200,000 tonnes of rapeoil in 2005/06, up from only 41,000 tonnes in 2004/05 with most supplies coming from Canada, it said.
In early October it had estimated EU 2005/06 rapeoil imports at 160,000 tonnes.
"Edible oil consumers can hardly cover their requirements for rapeoil and have started to switch to sunoil and soyaoil, also for price reasons," it said. "But the switch potential is limited."
"Owing to government incentives for green energy, increasing quantities of soyaoil are (being) used for biofuels in the EU."
Total European Union consumption of oils and fats for energy and fuel is set to increase by at least 1.2 million tonnes in 2005/06 following a 1.8 million tonnes rise in 2004/05, it said.
"The development of huge price premiums for rapeoil in Europe is spilling over to the world market and curbs rapeoil demand from other importing countries."
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