Global soyoil and palm oil prices are likely to rise in 2012 with a looming poor South American soybean crop to provide upward momentum, Hamburg-based oilseeds analysts Oil World said on Tuesday. "We expect vegetable oil prices to appreciate in coming months," it said.
"The supply and demand balance is going to become tighter, mainly as a result of recent additional soybean crop losses in South America and smaller-than-expected world production and export supplies of soyoil." "This will spill over to palm oil, pulling up prices in coming months, despite the seasonal recovery of palm oil production." Global dependence on palm oil supplies will continue to rise in 2012, keeping exports high in both leading producers Malaysia and Indonesia, it said.