Palm oil on the European vegetable oils European vegoils offered mostly lower on Friday following technical selling in Malaysian palm oil futures triggered by weakness in US and Chinese vegetable oil markets and forecasts for higher palm oil production in Indonesia.
Palm oil was mostly offered between $7.50 and $10 a tonne lower, with a firm dollar and a weaker ringgit both weighing. Malaysian palm oil futures closed between unchanged and 11 ringgit per tonne lower as they tracked weaker rival oils on the CBOT and China's Dalian Commodity Exchange. A weak ringgit, which makes the oil cheaper for foreign buyers, and could propel exports, limited losses.
"Trade on the European cash market remains slow as most signals remain bearish and deter buyers from taking positions, worried that by next week they would have bought it too expensive," one broker said. At 1730 GMT, CBOT soyoil futures were between 0.01 and 0.41 cents per lb up on follow-through technical buying with slightly easier energy markets and a strong dollar limiting gains. EU rapeoil was mostly quoted between four euros per tonne down and one euro up from Thursday, pressured by lack of demand and because of weaker energy markets. A strong dollar, which supports euro-priced products, and higher rapeseed futures cushioned losses.
Coconut oil was mostly offered between $10 and $15 a tonne down on the back of the strong dollar, which weighs on dollar-priced material, while palmkernel oil was quoted around $20 a tonne higher, supported by underlying demand because of concerns about nearby availability.
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