Palm oil on the European vegetable oils market firmed on Wednesday after Malaysian palm oil futures rose on the back of a weaker ringgit. A dip in the ringgit makes palm oil cheaper for foreign buyers and could boost export demand.
Asking prices for palm oil were between unchanged and $10 a tonne up from Tuesday, also supported by strength in CBOT soyaoil. Malaysian palm oil futures closed between 14 and 24 ringgit per tonne higher, mostly ignoring bearish Malaysian palm oil exports for February, which were 11 ppercent down from a month ago "With palm oil exports down in February it depends on February output, what will happen to the already huge stocks number," one broker said.
At 1730 GMT, CBOT soyaoil futures were between 0.01 and 0.12 cents per lb higher, tracking soyameal and soyabean futures, which were up on fears of declining soyabean crop prospects in Argentina. Weaker energy markets limited gains in soyaoil futures.
EU rapeoil was offered between one and two euros per tonne higher, following the stronger tone in Chicago soyaoil futures. Firmer rapeseed futures, tracking CBOT soyabeans on worries over Argentine soyabean crop conditions, were also supportive.
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