HAMBURG (March 26 2003) : Global palm oil prices are expected to rise inthe next three to four months but are likely to weaken afterwards ifweather in producing countries is good, Hamburg-based newsletter Oil Worldsaid.

"The tight phase in palm oil has in our opinion not yet run its course,"it said.

"In January-March 2003 world disappearance (consumption) of palm oil hasby far exceeded production, probably by up to one million tonnes."

"World palm oil stocks as of end-March are thus estimated to be down bynearly 400,000 tonnes from a year ago and have fallen to a four-year low."

"Palm oil production is forecast to recover by 300,000 tonnes from a yearago in April/June but in terms of additional supplies this may be fullyoffset by the lower inventories as of April 1," it added.

"As a result stocks cannot be expected to rise next quarter since is itlikely that demand will grow at a least at a normal rate."

"Above all demand from India must be expected to pick up pronouncedly incoming weeks."

Indian rapeseed crop prospects are poor and the country has low vegetableoil stocks, it added.-Reuters