Soyaoil and palm oil prices are likely to rise because of strong demand partly caused by sluggish production of other edible oils and fats, Hamburg-based analysts Oil World said.
Global production of the 15 main edible oils and fats excluding soyaoil and palm oil was likely to rise by 3.0 percent in 2006/07, the lowest rate of increase in many years and sharply down from the 6.2 percent rise in 2005/06, it said.
If demand for all 17 main oils and fats continued to rise "the necessary additional supply will have to come partly from a further reduction of soyaoil stocks and partly from larger soyabean crushings," it said. Palm oil stocks were low. Substantial rises in soyaoil and palm oil prices were expected in 2006/07, it said.