HAMBURG (March 12 2003) : Global soyameal prices are set to fall fromcurrent high levels when the expected excellent South American soyabeancrops increase supplies, Hamburg-based newsletter Oil World said onTuesday.

Soyameal prices have firmed following the poor US soyabean crop thisseason but supply tightness will be relieved by the big crops forecast forkey South American exporters Brazil and Argentina.

"The outlook for reduced US crush figures and thus more limited mealsupplies made meal the strongest member of the soya complex recently," thenewsletter said.

"This is not going to last once the South American exports are fullyrolling."

Prospects for reduced US soyabean crushing and more limited meal suppliesin the coming months have been behind strong meal prices, offsetting thepossibility of declining feed demand with the prospect of declininglivestock production.

"US soyabean crushers have been looking at low margins for some time nowand nobody should be surprised by the sliding US crush pace with temporaryplant closures in March and possibly beyond," it added.