European vegoils-Palm oil up with futures on higher energy markets

ROTTERDAM: 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 soyoil 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 soymeal futures on concerns over the ongoing trade war between the United States and top soy importer China, and buying back soyoil 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.

EUROPEAN VEG OILS TRADES

PALM OLEIN RBD, dollars a tonne fob Malaysia Nov 545 Jan/Mar 567.50

CRUDE PALM OIL, Sumatra/Malaysia sellers option dollars a tonne  Nov 540 Dec 547.50 Jul/Sep 600

COCONUT OIL Phil/Indo, dollars a tonne cif Rotterdam   Nov/Dec 882.50

PALMKERNEL OIL Mal/Indo, dollars a tonne cif Rotterdam Nov/Dec 845

PLEASE NOTE - As of September 26, Source code RTRS will be replaced with CRF and will include product code CRFA. You may need to adjust news filters to continue getting this report in your news window.