AMSTERDAM, Oct 16 (Reuters) - Sizeable declines in world export supplies of sunflower oil, rapeseed oil and soybean oil will raise the global dependence on palm oil this year, analyst Oil World said on Tuesday.
German-based Oil World said it expects an increase in palm oil exports in 2012/13. Palm oil exports declined in the period from April to September this year leading to record high stocks in the world's number 2 producer Malaysia.
"But the prospective sizeable decline in world exports of sunflower, rapeseed, and soy oils by a combined 1.1 million tonnes will contribute to a demand shift in favour of palm oil," Oil World said.
"The current unusually large price discounts of crude and processed palm oils relative to other vegetable oils and tallow will stimulate a demand shift in favour of palm oil."
Palm oil in Europe's vegetable oils market has lost 20 percent since January this year, mostly due to poor economic growth, record stocks in Malaysia, and good output from both Indonesia and Malaysia which together account for 90 percent of global palm oil supplies.
The gap between palm oil and more expensive soyoil widened to $334 in October from $145 in January. Palm oil's discount to rape oil more than doubled to $371 from $144 in January.
"The current attractive palm oil prices give an incentive to switch already now," said Oil World.
"However, the approaching wintry conditions in the consuming areas of the northern hemisphere are partly seen as a limiting factor for palm oil." Palm oil thickens at lower temeperatures and is not suitable for biodiesel use in colder weather
Oil World said palm oil will account for 55.1 percent of the global vegetable oils production in the period from July to December 2012.
Global vegetable oils consumption is seen growing at a lower pace due to slowdown in biodiesel production, Oil World said.
