Palm oil on the European vegetable oils market remained strong due to a firm ringgit and also because Malaysian palm oil futures continued to be supported by concerns about decreasing production. Asking prices for palm oil were mostly between unchanged and $15 a tonne higher after Malaysian palm oil futures closed between 21 and 27 ringgit per tonne up.
"The market is slowly turning bullish because of the South American weather market which underpins Chicago and belief that palm oil output will drop again in January," one broker said. "Currencies also played a large role today." At 1830 GMT, CBOT soyaoil futures were between 0.12 and 0.16 cents per lb higher, tracking firmer Chicago soyabean futures on hopes a weak dollar will spur exports. A weak dollar makes dollar-priced products cheaper for buyers holding foreign currencies. Slightly weaker energy markets capped gains.
EU rapeoil was quoted between five and seven euros per tonne down from Tuesday on the back of the weak dollar, which weighs on products priced in euros. Technical weakness in rapeseed futures also added to the pressure.
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