ROTTERDAM: Asking prices on the European vegetable oil market firmed further on Monday following a rise in CBOT soyoil on fears drought in South America and palm oil futures which were supported by rains which could cut production, market sources said.
"Rains in Malaysia and lack of rain in South America boosted asking prices, but demand was relatively slack on the cash market, partly as buyers believe prices are too high, but also due to the market entering the pre-Christmas doldrums," one broker said.
At 1730 GMT, CBOT soyoil futures were between 0.04 and 0.07 cents per lb down on profit taking following gains at the opening and sharp gains on Wednesday on technical buying because of fears for drought in South American soybean growing areas.
Liquid oils, soyoil, sunoil and rapeoil, were quoted one to 15 euros per tonne up from Friday, following CBOT soyoil and strong rapeseed futures. EU rapeoil changed hands at 943 a tonne fob exmill, up four euros from Friday and Aug/Oct traded at 910 euros fob.
Palm oil was offered between $2.50 and $10 a tonne up from Friday after Malaysian palm oil futures closed between 25 and 36 ringgit per tonne up following CBOT soyoil and worries that wet weather could cut production.
April/June RBD palm olein traded $5 up from Friday at $1,015 and $1,020 a tonne fob Malaysia and July/Sept changed hands between $1,005 and $1,006, up $3.50.
Lauric oils were offered as much as $50 a tonne up from Friday, with sellers reluctant to offer material due to terrible storms in the Philippines over the weekend. Buyers were holding back and no deals were reported.
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