Palm oil on the European vegetable oils market was offered mostly firmer on Friday on expectations that Malaysian palm oil production declined in June. Asking prices for palm oil were between unchanged and $5 per tonne higher although Malaysian palm oil futures closed between seven and 20 ringgit per tonne lower on profit taking sparked by technical selling in CBOT soyaoil futures.
"Hot and dry weather in parts of the US Midwest also underpinned most parts of the market as it could send Chicago futures higher on yield worries," one broker said. At 1600 GMT, CBOT soyaoil futures were between 0.07 and 0.20 cents per lb higher, tracking stronger Chicago soyabeans on weather concerns. A dip in energy markets capped gains.
EU rapeoil was mostly offered between two and four euros per tonne lower, tracking Chicago soyaoil futures, which were lower for most of the European day, and weaker rapeseed futures. Coconut oil was quoted between $5 and $20 a tonne up, tracking cash palm oil, but buyers were hard to find. Palmkernel oil followed the weaker trend in palm oil futures and slack demand also weighed. The spread between coconut oil and cheaper palmkernel oil was $625 a tonne for July/August shipment.
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