Kuala Limpur, 26 January 2011

Palm oil prices are set to mark a third year of gains in 2011 as global vegetable oil supplies continue to shrink, with analysts sharply revising up their outlooks in a Reuters survey.

A poll of 19 analysts tracking top producers Indonesia and Malaysia showed expectations for palm oil in 2011 have risen 24 percent to a median 3,100 ringgit ($1,016)per tonne, from 2,500 ringgit seen in a survey conducted in July.

Reuters graphic here: http://graphics.thomsonreuters.com/11/01/RTRS_PLMPOLL0111.html

The forecast goes higher than an average 2,853 ringgit in 2008 when palm oil hit a record, with the bulk of the gains coming from a dry spell hurting Argentine soyoil yields this year.

Ends --