MUMBAI (commodity Online): On the back of expanding bio-diesel production in Argentina and Brazil, the demand for vegetable oil is expected to remain strong during 2012, according to the National Commodity and Derivatives Exchange (NCDEX) reports.
The bio-diesel production is estimated to be around 2.4 million tons in Argentina and 2.3 million tons in Brazil for 2011.
According to United States Department of Agriculture, global vegetable oil production is estimated to be around 152.84 million tons, up from 145.98 million tons.
The world vegetable oil is dominated by soybean oil, palm oil and sunflower oil.
Argentina and Brazil are the largest producers of soybean oil, Malaysia and Indonesia are major producers of Palm oil. Meanwhile, Russia is the largest producers of sunflower oil.
For March delivery, in Inter-continental Exchange (ICE), soybean oil traded at 52.58 cents per lb. while, Palm oil in Bursa Malaysia Derivative Exchange (BMD traded at 3124 MYR per ton on 8th February.
