Palm oil on the European vegetable oils market was firmer on Monday following gains in Malaysian palm oil futures, as a rally in energy markets triggered bargain buying and short covering after recent losses on the back of an improved output outlook.
Asking prices for palm oil were mostly between unchanged and $7.50 a tonne higher, also supported by a weaker dollar, which underpins products quoted in that currency. Malaysian palm oil futures closed between 16 and 33 ringgit a tonne higher as stronger energy prices can boost demand for vegetable oils by biodiesel producers.
At 1630 GMT, CBOT soyaoil futures were between 0.26 and 0.39 cents per lb higher, underpinned by strong energy markets. Technicals were also supportive, with CBOT traders selling soyameal futures on concerns over the ongoing trade war between the United States and top soya importer China, and buying back soyaoil contracts.
Strong energy prices also supported EU rapeoil with asking prices between unchanged and three euros per tonne higher. Gains were limited by a weaker dollar, which weighs on euro-priced products. The weaker dollar and firmer palm oil pushed lauric oils higher. Offerings were mostly between unchanged and $10 a tonne up from Friday. Underlying demand also underpinned prices.
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