Indonesia, the world's second largest producer of crude palm oil, also tightened the world supplies by instituting a ban on exports which was recently lifted and replaced by a 40 percent tariff. World soyoil stocks for 1997-98 are forecast by USDA to be very tight. In terms of days of total use, stocks are expected to be sufficient for 31 days of use versus 34 days in 1996-97 and 40 days for the 10 year average. A similar scenario is expected for US soyoil stocks. In general, edible oil stocks do not fluctuate significantly from year to year since it is a perishable product.
Oil prices adjust to ration demand if stocks are high.
For 1997-98, Canada is expected to be a net exporter of protein meal as increased exports of canola and flaxseed meal offset imports of soymeal. Soymeal and canola meal are the primary sources of protein supplements for the livestock feed industry in Canada. With a price of 60-70 percent that of soymeal, canola meal is a good substitute for soymeal. Research is continuing on increasing the use of canola meal in livestock rations. For example, canola seed is being dehulled to increase protein content and reduce fibre content for feeding fish.