Friday Oil World Comments

• Demand has been relatively stronger for soya meal than for oil lately. We correlate this to the noticeable recovery in world market demand for soya meal.
• Palm oil production is jeopardized in Malaysia due to drought...
• US stocks of 15 oils & fats as of early July were at 2.35 Mn T up 2% from a month...
• Soybean stocks in Argentina, Brazil and Paraguay were reduced by as much as 20.5 Mn T below last year's level as of July 1, 2009. It will be very difficult for US producers and exporters to satisfy the corresponding swing in global import demand...
• Argentine soybean crushings were relatively large until June, but dwindling soybean supplies will enforce a pronounced decline of the processing volume below the year-ago level in July/Feb 2009/10...
• We consider it likely that Malaysian palm oil production in 2009 will decline below last year's 17.73 Mn T and will turn out lower than expected also in 2010. Rainfall deficits were alarming in June and July, stressing oil palms...
• World exports of soya meal sharply exceeded expectations in June, bringing the total for April/June 2009 to 15.0 Mn T, up 1.0 Mn T from last year...
• In the EU-27 crushings of 3 major oilseeds reached a record 39.4 Mn T in July/June 2008/09, up 1.9 Mn T from a year earlier, thereof rapeseed a record 20.1 Mn T (up 1.7 Mn T)...

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