Biofuels to cut US, Brazil soyaoil sales

Soyoil exports by the US and Brazil are likely to be substantially cut in the coming months due to increased domestic biofuel production in the two countries, Hamburg-based oilseeds analysts Oil World said on Tuesday. A reduction in US and Brazilian exports would likely tighten world market supplies as Argentina would be unable to fill the gap, Oil World said.
The main reason for the decrease is that the United States has been forecast to consume 3.0 million tonnes of vegetable oils for biofuel production between October 2008 and September 2009, up from 2.40 million tonnes in 2007/08.