Firm on improved economic outlook: European vegoils

AMSTERDAM: Asking prices on the European vegetable oils market rose on Friday on better-than-expected US economic data and on concerns that heavy rains in parts of Malaysia could affect the crop.

"Adverse weather circumstances in some parts of the world and an improved economic outlook led to higher prices," one trader said.

US durable goods orders jumped 3.8 percent in November after being flat in October, the Commerce Department said. Economists had forecast orders rising 2 percent from a previously reported 0.5 percent fall.

At 1730 GMT, CBOT soyoil futures were between 0.06 and 0.43 cents per lb up on short covering ahead of the holiday and concerns dry weather in South America could damage the crop.

Liquid oils, soyoil, sunoil and rapeoil, were quoted up 5 to 15 euros ($6.52-$19.56) per tonne from Thursday.

Palm oil was offered between $15 and $25 a tonne up from Thursday after Malaysian palm oil futures closed up between 65 and 93 ringgit ($20.53-$29.45) per tonne, hitting a three-week high on short-covering ahead of the weekend.

April/June RBD palm olein traded $15 up from Thursday, between $1,047.50 and $1,060 a tonne fob Malaysia.

Lauric oils - coconut oil and palmkernel oil - were offered at $1500 and $1550 a tonne on concerns that heavy rains in Philippines could damage the crop.

Both the London and Paris commodities markets closed at 1300 GMT on Friday, although Euronext stock markets will operate normal hours.

"There was very little activity in the afternoon as everyone left early ahead of the long Christmas weekend," another trader said.

Copyright Reuters, 2011