European vegoils recover on weaker dollar

ROTTERDAM: The European vegetable oil market firmed slightly on Friday in a mild rebound from Thursday's losses and because of a weaker dollar against the euro, market sources said.

"It was not a very spectacular day with prices mostly moving sideways and somewhat supported by the weak dollar. We saw some business left and right when buyers covered some positions in case the market has hit a bottom, although the feeling still is bearish on good crop weather," one broker said.

At 1630 GMT CBOT soyoil futures were 0.18 to 0.62 cents per lb down on good crop weather.

Liquid oils, soyoil, rapeoil and sunoil, were offered one euro up to two euros up from Thursday, slightly pressured by the dollar weakness, which weighs on euro-priced products and lower rapeseed futures.

EU rapeoil changed hands at 977 euros per tonne fob exmill for Aug/Oct, up two euros from Thursday.

EU sunoil changed hands at $1465 a tonne extank for July/Sept and Oct/Dec fetched $1,350 and $1,355.

Palm oil was offered between $2.50 a tonne up to $2.50 down after Malaysian palm oil futures closed barely changed with prospects for growing palm oil stocks weighing on the market.

Oct/Dec RBD palm olein traded between $1,110 and $1,102.50 a tonne fob Malaysia, down $2.50 from Thursday, Jan/March traded $5 down between $1,112.50 and $1,107.50 and April/June fetched $1,115 and $1,112.50, down $7.50 from Thursday.

Lauric oils recovered on the weakness of the dollar after trades were done in the day.

Coconut oil changed hands at $1,755 a tonne cif Rotterdam, up $15 from Thursday. Both July/Aug and Aug/Sept traded $10 down at $1,730 and $1,715 respectively.

Palmkernel oil traded $5 up from Thursday at $1,735 and July/August traded at $1,720 cif Rotterdam.

Copyright Reuters, 2011