HAMBURG - Sudden demand for rapeseed oil as biofuel means European Union rapeoil producers are increasingly sold out, Hamburg-based oilseeds analysts Oil World said.
"The combination of high energy prices and government interference - tax exemptions for biofuels - has created a severe imbalance that will gradually unfold repercussions in the world market," it said.
"The most obvious sign of the market being in disequilibrium is the fact that biodiesel as well as rapeoil are partly completely sold out in northern Europe," it said.
This has happened despite European Union rapeseed crushers and processors running at full capacity.
"A first reaction of the market is indicated in the sharply rising EU import demand for rapeseed oil, mainly from Canada," it said.
Strong demand for rapeseed oil as biofuel has had a major impact on prices, it said.
"Rapeseed oil prices in Rotterdam have reached new highs so far in October and established unprecedented price premiums over other vegetable oils," it said.
REUTERS NEWS SERVICE
