Breaking news-Crude palm oil prices to rise in 2008/09-analyst

LONDON, July 16 (Reuters) - Crude palm oil prices should rise during 2008/09 with consumption growing at a faster pace than production, Standard Chartered analyst Abah Ofon said in a report on Wednesday.Ofon said production increases in Indonesia and Malaysia however, that tight export supplies of other edible oils such as sunflower oil and soyoil and the wide price discount for CPO boosted exports during the first half of 2008.
"In the near term, high energy prices and freight costs will provide some support as will spillover gains from the soy complex on account of tight stocks in the US and crush delays in Argentina," he said. Ofon said biodiesel demand could now be the weakest part in the overall demand picture with the rising cost of edible oils slowing biodiesel output growth in a number of producers, including Europe.