Sunflower oil prices are likely to fall in coming months as a large increase in global sunflower seed harvests mean a major rise in sunoil exports is likely, Hamburg-based oilseeds analysts Oil World forecasts.

Global 2005/06 sunseed production is likely to rise to 28.85 million tonnes from 26.18 million tonnes in 2004/05 largely because of good crops in Russia, Ukraine and the US, it said.

World 2005/06 sunoil production is likely to rise to 10.23 million tonnes from 9.29 million tonnes in 2004/05.

"Due to the prospective sharp increase in world trade (exports) of sunoil by almost 450,000 tonnes to a record 3.24 million tonnes in October 2005/September 2006, we consider it likely that sunoil prices will weaken further on the world market," it said.

Major sunoil price falls had recently taken place in key export regions including the Black Sea and Argentine.

Copyright Reuters, 2005