Palm oil on the European vegetable oils market eased on Thursday after technical selling of CBOT soyaoil futures. Asking prices for palm oil were mostly between $2.50 and $5 a tonne lower after opening slightly higher on a stronger ringgit and mostly firmer Malaysian palm oil futures. Futures closed between 14 ringgit per tonne down to 16 ringgit up, supported by improved exports in March.
Gains were capped by the resumption of a five percent export tax in Malaysia, starting in April, which could weigh on export demand. At 1730 GMT, CBOT soyaoil futures were between 0.42 and 0.57 cents per lb down, tracking a lower energy market and pressured by technical selling as Chicago traders sold soyaoil futures and bought soyameal contracts.
EU rapeoil was quoted between unchanged and three euros per tonne lower, following the weaker trend in Chicago soyaoil and because of weaker energy markets, which could reduce demand from biodiesel producers for rapeoil. Lauric oils were offered between unchanged and $15 a tonne higher on improved demand and as a result of a stronger ringgit.
"After June/July palmkernel oil traded at $1,010 a tonne cif Rotterdam sellers at those levels disappeared, after that the market turned quiet and asking prices were left unchanged at the higher level for the rest of the day," one broker said.
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