OILS/FATS STOCKS SEEN FALLING SHARPLY IN 1986/87 Visible stocks of 17 oils and fats are probably peaking now and are likely to fall sharply by October 1 this year, the Oil World newsletter said. Oil World forecast that stocks of oils and fats may be cut to only 9.8 mln tonnes at the end of this season, compared with 10.6 mln a year earlier. Its survey covered 13 oils -- soy, cotton, groundnut, sun, rape, sesame, corn, olive, coconut, palmkernel, palm, lin and castor -- and four animal oils and fats -- butter, fish oil, lard and tallow/greases. Oil World's analysis predicted only a slight production increase of 0.5 mln tonnes in the year to end-September 1987, compared with increases of 3.6 mln and 4.0 mln tonnes in the previous two seasons. It said world consumption was continuing to rise. Unusually low prices prevailing since early 1986 had stimulated demand for both food and non-food purposes, it said. World consumption could increase by a record 2.8 mln tonnes to 71.8 mln tonnes this season and would be even higher if the Indian government did not artificially curb domestic demand. Oil World said it did not expect the European Community (EC) to introduce a vegetable oils tax, but if such a tax were introduced it would have a negative impact on EC consumption.