Palm oil and the world fats and oils economy

The world production of palm oil has increased dramatically over the past five years. further and rapid growth is certain, particularly into the early 1980's. due to the near optimal climate and well developed roads in Malaysia, much of this expansion will occur there. with increased production, palm oil has been priced below competing fats and oils, including soybean oil, depressing the prices of all fats and oils. the long term impact of the developing palm oil industry is likely to be lower prices for soybean oil, but higher prices for soybean meal.