KUALA LUMPUR (Nov 13): The resurgent palm oil sector is a major obstacle for growth in global soybean oil trade, says the US Department of Agriculture (USDA). USDA also said the price discount of palm oil relative to soybean oil is currently widening. "The ILUC provision applies to palm oil, with sustainability requirements such as being produced on unused or abandoned land or cultivation by small holders. This could subtract about 3.5 million tonnes from the EU palm oil demand, leaving even more supplies to compete worldwide with soybean oil and other vegetable oils," USDA said. "Heightened competition for the remaining markets could further squeeze the demand for US soybean oil exports," it added.

Source: The Edge Markets November 13, 2019 08:16 UTC