Soyoil prices, which have fallen 10% from an early March high, were likely to strengthen in the near-to-medium term because world imports, particularly from China and India have picked up, according to analysis group World Oil.

India is set to buy in 600,000 tonnes of the vegetable oil - which is used for making cooking oil, margarine, confectionery and biodiesel - in the July-to-September quarter, more than twice the level of a year ago, and the highest imports in five years.

China is to import 700,000 tonnes in the period, a huge jump from the 136,000 tonnes in the April-to-June quarter, after a period when supplies have been disrupted by a ban on purchases from Argentina, the world's top soyoil exporter.

The main alternative suppliers, Brazil and the US, will sharply increase soyoil exports to China in June and July, Oil World said.

"We expect soyoil to develop price premiums over palm oil," the group added, predicting palm oil prices may come under pressure from seasonally increasing production in the medium term in the major growing countries of Indonesia and Malaysia.

Chicago soyoil prices have lagged those of the vegetable oil in Brazil, which China has tapped for the bulk of its soyoil in the absence of Argentine supplies.

However, US soyoil prices look set to be boosted by the turn of China to America for imports, after buying out Brazil, and in the absence of Argentine supplies.

The US earlier this month booked its first sale of soyoil to China since April last year.

Argentina said last week that its own soyoil exports to China had been normalised, three months after a ban imposed as part of a trade dispute. However, traders have said they are still awaiting confirmation from Beijing.