Oil World's Mielke sees bull market for oilseeds

from The Economic Times:

CHICAGO (Reuters): World prices for oilseeds like soybean, sunflower and oil palm will rise in coming years as demand for grain-based fuels cuts acreage and diverts edible oils into the production of biodiesel, Oil World Editor Thomas Mielke said on Monday.

"The fundamentals for oilseeds point to the most bullish situation in at least 30 years," Mielke, long-time director of the Hamburg-based publication, told a biofuels conference.

The US Department of Agriculture on Friday in its monthly supply/demand report said global oilseed stocks for the 2007/08 season ending in September 2008 will be down 21 per cent from the prior season.

"We are facing the current season with an unprecedented decline in oilseed stocks," Mielke said, noting a decline of stocks of 10 key oilseeds by 17-19 million tonnes in one season.

But Mielke told media that despite the heavy drawdown of oilseed stocks over the coming year, a high level of stocks from the decade-long rise in production would help the market absorb production shortfalls.

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