29/11/2012 (Bernama) - Volatility in agri commodity prices looks set to continue into 2013, according to a report from Rabobank's Agri Commodity Markets Research department.

According to the Rabobank 2013 Commodities Outlook, this will be particularly true for grain and oilseeds markets, with a supply squeeze in the first six months expected to push prices higher, before an expected production rebound leads to a weakening in prices in the second half of the year.

The report said soymeal is the commodity likely to show the largest price decline by the end of 2013.

In contrast, Rabobank analysts expect palm oil to be the strongest performer, as Chinese imports and biofuel demand drive prices higher after the sell-off in 2012.

The soft commodity markets should continue in the same vein as this year, with prices expected to be relatively range-bound.