HAMBURG, March 6 (Reuters) - Global soyoil and palm oil prices are expected to firm in coming months partly because of poor South American soybean harvests coupled with high soyoil-based biodiesel output in Brazil and Argentina, Hamburg-based oilseeds analysts Oil World said on Tuesday.
"The further increase in South American biodiesel production despite the sharply reduced soybean production will erode South American soyoil exports," it said. "This will further raise the global dependence on palm oil and contribute to appreciating prices of soyoil, palm oil and other oils and fats."
South American drought is expected to cut global soybean supplies while there will be a smaller year-on-year increase in world palm oil production in April/September 2012 than in the same period in 2011, it said.
Argentina is forecast by Oil World to raise Jan/Dec 2012 biodiesel production using soyoil as feedstock to 3.0 million tonnes from 2.4 million tonnes in 2011.
Brazil will also raise biodiesel output, it said, so restraining soyoil exports and transferring more demand to palm oil.
For Jan./June 2012 it forecasts average prices for refined, bleached and deodorised (RBD) palm oil will approach $1,200 a tonne against $1,105 on Tuesday.
Soyoil prices fob Argentina may rise to or above $1,260 a tonne against current levels of around $1,205 a tonne, it said.
"The further increase in South American biodiesel production despite the sharply reduced soybean production will erode South American soyoil exports," it said. "This will further raise the global dependence on palm oil and contribute to appreciating prices of soyoil, palm oil and other oils and fats."
South American drought is expected to cut global soybean supplies while there will be a smaller year-on-year increase in world palm oil production in April/September 2012 than in the same period in 2011, it said.
Argentina is forecast by Oil World to raise Jan/Dec 2012 biodiesel production using soyoil as feedstock to 3.0 million tonnes from 2.4 million tonnes in 2011.
Brazil will also raise biodiesel output, it said, so restraining soyoil exports and transferring more demand to palm oil.
For Jan./June 2012 it forecasts average prices for refined, bleached and deodorised (RBD) palm oil will approach $1,200 a tonne against $1,105 on Tuesday.
Soyoil prices fob Argentina may rise to or above $1,260 a tonne against current levels of around $1,205 a tonne, it said.
