Palm oil prices on Europe's vegetable oils market were mostly higher on Wednesday, supported by a 3-1/2 year high for mineral oil, strength that further dampened buying interest during a holiday lull in major producer Malaysia.
Malaysian markets, which are an international benchmark for palm oil products, were closed for a public holiday to mark elections in the country, depriving the European market of direction. Asking prices for crude palm oil were $2.50 to $7.50 a tonne higher compared with Tuesday.
Brent crude oil rose more than 3 percent to its highest level since November 2014 after US President Trump pulled out of a nuclear agreement with Iran and announced the "highest level" of sanctions against the Opec member. Palm oil and other edible oils like soybean oil and rapeseed oil are used as feedstock for biodiesel fuel, making them sensitive to movements in mineral oil markets. Buying interest was limited, with rising prices and strength in the dollar curbing appetite, and prices.
Crude palm oil traded at $657.50 a tonne cif Rotterdam for July/September delivery. No other significant trading was confirmed in palm oil or other vegetable oils. Weakness in the euro, which touched a fresh 2018 low against the dollar, helped underpin rapeseed oil prices, which are denominated in euros.
Comments
Comments are closed for this article.