Global oilseed stockpiles to fall 16% to 74.1 million tonnes during 2011/2012 crop year--a three-year low--as output falls due to drought, consumption increases 3.3% to 449.7 million tonnes, Oil World says

LOS ANGELES , February 28, 2012 () – According to industry researcher Oil World, during the 2011-2012 crop year, worldwide oilseed stockpiles will fall 16% year-over-year from 88.4 million tonnes to 74.1 million tonnes—a three-year low—as the worldwide oilseed output falls due to drought, Bloomberg reported Feb. 28.

During this same period, worldwide oilseed consumption will most likely rise 3.3% to 449.7 million tons, said Oil World.

Droughts in Argentina and Brazil caused by the La Nina weather system will cause a massive slowdown in global outputs during the second half of the 2011-2012 crop year, the researcher added.

Globally, the production of soybeans and rapeseed may fall, respectively, 7.3% and 1.5% to 59.8 million tons—a three-year low, said Oil World.

Oil World predicted that China, the European Union, India, Ukraine and the U.S. will produce smaller rapeseed crops.

During the 2011-2012 crop year, Canada will produce a record rapeseed harvest of14.4 million tonnes, while Australia will yield a rapeseed harvest of 3.05 million tonnes, said Oil World.

Oil World said that that the premium prices that both rapeseed and oil had been trading at thus far during the course of the season were a reflection of inadequate supplies.

The primary source of this article is Bloomberg, New York, New York, on Feb. 28, 2012.

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