Palm oil on the European vegetable oils market firmed on Monday following gains in Malaysian palm oil futures on the back of expectations for improving export demand. Asking prices for palm oil were mostly between unchanged and $7.50 a tonne higher after Malaysian palm oil futures closed between 16 and 35 ringgit per tonne lower on expectations that improved January exports and lower production could reduce huge Malaysian palm oil stocks.
"As usual it will be a tug of war between output and exports what will happen to the stocks," one broker said. At 1830 GMT, CBOT soyaoil futures were between 0.01 and 0.08 cents per lb higher, tracking stronger Chicago soyabean futures on concern that dry Argentine weather could reduce soyabean yields. Weaker energy markets limited gains.
EU rapeoil was quoted between five and six euros per tonne higher, tracking gains in rapeseed futures on concerns that Argentine dryness could tighten global oilseed supplies. A firmer dollar also underpinned euro-priced prices. Lauric oils were offered between unchanged and $25 a tonne down from Friday as sellers were lowering prices to attract buyers, which have been hard to find recently. A further recovery in the dollar also weighed on products quoted in that currency.
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