ROTTERDAM: European vegetable oil market recovered from earlier lows on Wednesday as the proposal of a concerted central banks action to boost financial liquidity led to higher equity and commodity markets, dealers said.
"The European cash market started the day mostly weaker because of a strong dollar and slack demand. But after news that the central banks will try to create liquidity supported the euro and caused firmer price levels on hopes demand will pick up eventually," one broker said.
At 1730 GMT CBOT soyoil futures were between 0.23 and 0.27 cents per lb up on a weaker dollar and stronger mineral oil prices.
Liquid oils, soyoil, sunoil and rapeoil, were offered between two and five euros per tonne up from Tuesday following CBOT soyoil and mineral oil, but gains were limited by the weaker dollar, which weighs on euro-priced products and lower rapeseed futures. EU rapeoil changed hands at 927 and 928 a tonne fob exmill for Feb/April three euros from Tuesday, and Aug/Oct traded at 898 and 900 euros fob.
Palm oil was offered between $7.50 a tonne down and $7.50 up from Tuesday on the easier dollar and the firmer trend in Chicago and mineral oil after Malaysian palm oil futures closed between 36 and 78 ringgit per tonne down on worries over the global economy and disappointing November palm oil exports.
Early in the day Jan/March RBD palm olein changed hands at $1,060 and $1,062.50 a tonne fob Malaysia, down $10 from Tuesday and April/June traded from $1,030 down to $1,017.50 and back up to $1,035, up $2.50 from Tuesday.
Coconut oil was offered between $25 and $30 a tonne down from Tuesday as sellers were trending towards buyers' ideas to create business. Jan/Feb coconut oil changed hands at $1,450 a tonne cif Rotterdam and Feb/March palmkernel oil fetched $1,300 a tonne cif Rotterdam.
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