Spanish Sunoil Exporters Seek Seed Clearance

Spanish exporters are asking the government to clear 33,200 tonnes of sunflower seed authorised for export by the European Community (EC), a spokesman for one of Spain’s major sunflower oil producers said.

He told Reuters in a telephone interview the government was holding back on authorisation to hold prices low.

“They are deliberately keeping prices down to help meet this year’s inflation target despite the threat of a surplus on what looks like a bigger harvest than we expected,” he said.

He said the policy of allowing stocks to accumulate had caused a price drop, with raw oil prices falling to 147 pesetas a kilo from 160 at the start of the 1986/87 marketing year ending July 31.

Sunflower oil output was expected to rise to 370,000 tonnes this year from 340,000 last year, with seed output up at 905,000 tonnes from 860,000 last year.

He said domestic consumption was falling due to imports of other edible oils. “We estimate demand at 296,000 tonnes this year, leaving a 124,000 tonne surplus with the 50,000 tonnes now stockpiled,” he said. “If we discount 24,000 tonnes held for strategic purposes, this still leaves us with 100,000 tonnes.”