Global palm oil prices likely to rise

Global palm oil prices are likely to rise moderately in the first half of 2010 because of continued strong global demand, Hamburg-based oilseeds analysts Oil World forecast on Tuesday. "Although fluctuating, we expect palm oil prices to trend moderately higher and probably appreciate by $30-60 (a tonne) from end-February until June 2010," it said.
"The global dependence on palm oil will continue to increase during the remainder of this season and also in the years ahead," it said. Benchmark Malaysian palm oil closed at a two-month high of $811 a tonne on Monday. Oil World said this month it expects global palm oil stocks to fall in coming months as growing demand soaks up rising production. Palm oil prices are likely to stay at a relatively small discount to soyaoil, it said. Rising biodiesel output using soyaoil in these countries was likely to cut soyaoil export supplies this year, it said.