AMSTERDAM, March 5 (Reuters) - Palm
oil imports to the European Union are heading for a record high this season,
taking the slack from lower supplies of soyoil and sunflower oil, German-based
analyst Oil World said.
Oil World said palm oil imports to
the European Union could reach 6.4 million tonnes in the period from October
2012 until September 2013, compared to 5.83 million tonnes in the same period a
year before.
"More palm oil is needed to
offset lower consumption of soya oil and sun oil," Oil World said.
"Also recent low prices have
generated considerably higher palm oil demand in the EU energy sector (for
electricity generation as well as for biodiesel)"
It said most of the increase in palm
oil imports was noticed in the Netherlands, Germany and Italy, while palm oil
imports to Spain declined due to further falls in biodiesel production in the
last quarter of 2012.
Palm oil prices have been pressured
by high stock in Malaysia and Indonesia that account for nearly 90 percent of
global production.
Crude palm oil prices for shipments
cif Rotterdam fell to $875 a tonne in February from $1,125 a tonne in the same
period a year ago.
"Palm oil stocks in Malaysia
and Indonesia started to decline in January and obviously continued to decline
in February, but are still sharply above a year ago," Oil World said.
