ROTTERDAM: Asking prices on the European vegetable oil market jumped on Friday following futures markets which rallied on a weak dollar and because of strong mineral oil, market sources said.
"It was Friday buy-day in futures markets but business was mostly speculator covering in the hope that the low dollar will attract more Chinese demand," one broker said.
"Buyers on European cash market were mostly unsettled by the sudden jump and cautiously buying a little here and there, still believing large global vegetable oil stocks and poor performance of the global economy will weigh on prices eventually."
At 1630 GMT, CBOT soyoil futures were between 0.43 and 1.21 cents per lb up on technical buying sparked by a rally in mineral oil on the back of a weak dollar.
Liquid oils were quoted between 20 and 25 euros per tonne up from Thursday, following the rally in Chicago and strong mineral oil and rapeseed futures. EU rapeoil changed hands at 925 and 929 euros per tonne fob exmill for Feb/April.
Palm oil was offered between $20 and $30 a tonne up from Thursday, following the jump in CBOT soyoil and mineral oil after Malaysian palm oil futures closed between 18 and 69 ringgit per tonne up on the dollar weakness and hopes for good October 1-15 exports.
Jan/March RBD palm olein changed hands between $985 and $995 a tonne fob Malaysia, up $15 from Thursday and April/June traded $27.50 higher between $985 and $1,007.50 fob.
Lauric oils were offered between $30 and $40 following the trend in rival oils and supported by a weaker dollar. Both Nov/Dec and Dec/Jan coconut oil changed hands at $1,200 a tonne cif Rotterdam, up $20 from Thursday and palmkernel oil traded between $1,070 and $1,100 a tonne cif Rotterdam for Dec/Jan, Jan/Feb traded at $1,100 and Feb/March fetched $1,090 cif.
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