Soya oil prices are likely to rise because of strong demand, low stocks and possible sluggish soyabean production, Hamburg-based newsletter Oil World said.
"We expect soya oil to appreciate and become firmer relative to soyameal in the near term as well as in 2004/05," it said. "World soya oil demand has recently been relatively better than meal demand...soyameal stocks accumulated while global stocks continued to decline."
The newsletter said it suspected quality damage to the US soyabean crop.
"The oil content of the soyabean crop has apparently deteriorated considerably owing to the very cold and wet conditions in August," it said on Tuesday.