PALM oil gained to the highest in more than seven months, adding to the

best annual performance in 12 years, on anticipation higher crude oil

prices would lift demand for biofuels.

Palm oil rallied 56 per cent last year on rising demand from India

and China, the biggest consumers, and amid tight supplies of soybean

oil because of drought in South America.

Crude surged 78 per cent in 2009, the best annual gain in a decade, and soybean oil rose 21 per cent.

“Looking ahead, crude oil price and the influence of the dollar

will remain a major influence on vegetable oil prices,” James Fry,

managing director of LMC International, said by email before trading

began.