26/12/2007 (Energy Current) - Palm and soybean oil prices surged to new record highs over the Christmas holidays in Malaysia and Chicago as surging demand for the use of vegetable oils in food and fuel outstrips demand, according to media reports.  Palm oil for March contract was trading at MYR 3,080 (US$923.40) on the Bursa Malaysia Derivatives Exchange before sliding to MYR 3,078 (US$922.80) by noon on Dec. 25, surpassing the previous high of MYR 3,068 (US$919.80) in November.  The record surge in palm oil prices is backed by a growing demand of the use of the vegetable in products ranging from cosmetics and confectionaries to biodiesel along with supply crunch from recent floods in Malaysia.

Meanwhile, soybean oil futures in Chicago surged to a record high for at least 33 years on Dec. 24 as soybean futures rose above US$12 a bushel for the first time in 34 years.  Traders are reportedly betting on a possible shortfall in the acreage available for soybean plantation in U.S. next year after a short crop in 2007 as soybean competes with corn, a popular feedstock for ethanol.