Palm oil has good prospect

Palm oil has good prospect

HAMBURG (Reuters): World palm oil prices are expected to rise sharply over the next three to four months in response to Indonesia's export ban, the independent Oil World newsletter said Tuesday.

Palm oil and olein prices would probably develop premiums over competing soybean, rapeseed and sunflower oils, it added.

Indonesia imposed a three month ban last week to safeguard domestic supplies and keep prices stable in the wake of heavy export activity that had depleted stocks.

But the export ban is due to be reviewed at the end of January.

Oil World said Indonesian palm oil exports in Jan/Sept. 1998 could fall to 1.50 million tons from 1.83 million in the same 1997 period and exports of lauric oils to 670,000 tons from 780,000 previously.

Palm oil stocks in Indonesia might fall to 290,000 tons by late March, from 450,000 at the end of 1997 and 830,000 at the