14/03/2008 (Commodity Online) - Palm oil futures in Malaysia, the global benchmark, climbed on speculation recent declines may encourage buying, including from China to make up for damage to its winter rapeseed crop.

Palm oil, which is 15 percent lower than the record 4,486 ringgit ($1,418) a metric ton reached March 4, dropped as much as 3.7 percent yesterday. Soybean oil, its main substitute, also fell in Chicago trading on speculation a better-than-expected South American soybean crop would ease supply concerns.

``China is likely to purchase more edible oils from the world market this year'' following damage to its winter rapeseed crop, which also produces a cooking oil, said Gerard Sheah, a plantation analyst at MacQuarie Capital Securities (Singapore). ``The pace of global production growth is not keeping up with demand.''.

Soybean spot again weak, futures prices again tumble Soybean has continued its either side swings in spot as well futures market. Today, soybean prices eased in Indore and Vidrabha markets. At Indore market, prices were at Rs.2110 from last day’s levels of Rs.2160-2170 per quintal while plant prices were quoted at Rs.2160-2180 per quintal.

In Vidarbha region, prices moved downward by Rs.10 to Rs.2210 per quintal while plant prices remained almost steady at Rs.2270 per quintal. Soy oil prices also moved down to Rs.662-663 per 10 kg from previous level of Rs.670 per 10 kg at Indore market while Amravathi prices remained steady at Rs.710 per 10 kg. Futures prices of soybean and
soy oil have again tumbled across the contracts.