Palm oil on the European vegetable oils market recovered slightly on Tuesday due to bargain buying and because of short covering in Malaysian palm futures. "Despite the prices recovering a little, bearish sentiment prevails still, which restricts buying interest mostly to cherry picking and some switch trading for technical or logistic purposes," one broker said.
Palm oil was mostly offered between $2.50 and $7.50 a tonne up from Monday after Malaysian palm oil futures closed between 5 and 24 ringgit per tonne higher on technical buying and because of a mild rebound in mineral oil after Brent dipped just under $50 on Monday. At 1730 GMT CBOT soyaoil futures were between 0.16 and 0.24 cents per lb up in a technical bounce after recent losses and due to concern about dry spots in the eastern Midwest as soyabeans set pods. Firmer mineral oil prices underpinned soyaoil also.
EU rapeoil recovered on Tuesday after a sudden steep fall the day before and were offered between seven and 13 euros higher. Stronger Chicago soyaoil futures and gains in rapeseed futures were also supportive. Lauric oils were mostly offered between unchanged and $15 a tonne down as sellers were trying to create more buying interest. They succeeded in palmkernel oil, which still is at a discount of $260 to coconut oil.
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