Growth in global vegetable oil consumption is set to gain momentum this season, helped by increasing use of edible oils for biodiesel production, oilseeds analysts Oil World forecast on Tuesday. World consumption of vegetable oils is expected to rise by about 6 million tonnes to 137.6 million tonnes in 2009/2010, compared with an increase of 5 million tonnes in 2008/09.
"Consumption for production of biodiesel will turn out larger than the year before in 2009/10, although it will not come up to expectations in the US owing to legislative hurdles," Oil World said in a report released this week. Production will struggle to keep up with rising consumption, Oil World said, due to a relatively small increase of palm oil output, a large decline in sunflower oil and significant reductions in cotton and groundnut oil.
Oil World sees production of the eight major oils up about 5.3 million tonnes to 136.9-137 million tonnes, trailing its estimate for consumption. It said the forecast production deficit in 2009/10 could lead to a reduction of global ending stocks of major vegetable oils by about 0.8 million tonnes to 14.77 million tonnes.
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