Palm oil on the European vegetable oils market rose slightly on Friday because of dollar weakness while Malaysian palm oil futures were narrowly mixed on profit-taking and because of concerns about growing stocks. "The European cash market is still mostly dominated by currencies. Buyers for palm oil were reluctant to do business ahead of the weekend with probably lower Malaysian palm oil exports for October due on Monday, which could bring futures down even more," one broker said.
Palm oil was offered between $2.50 and $10 a tonne up from Thursday, supported by a dip in the dollar, which underpins products offered in that currency. Malaysian palm oil futures closed between seven ringgit per tonne down and six ringgit up after being firmer earlier in the session as profit-taking and worries that production in October will outpace export, which would lead to an increase in the already huge Malaysian palm oil stocks.
At 1730 GMT CBOT soyaoil futures were between 0.19 and 0.30 cents per lb up on bargain buying and talk of renewed export demand. Beneficial Brazilian soyabean crop weather limited gains. Liquid oils -EU rapeoil, soyaoil and sunoil- were offered between six euros per tonne up and four euros down from Thursday, supported by gains in CBOT soyaoil futures, while the weaker dollar and easier rapeseed futures weighed on prices.
Demand for lauric oils remained slack with sellers offering material between unchanged and $5 down for coconut oil, while palmkernel oil was offered as much as $30 a tonne lower on the weakening tone in palm oil futures and due to the weak ringgit. The discount of palmkernel oil grew to around $300 a tonne to coconut oil.
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