Palm oil on the European market eased on Wednesday with Malaysian palm oil futures, which encountered a technical correction after recent gains on concerns over falling production. Palm oil was mostly offered between $2.50 and $10 a tonne down from Tuesday after Malaysian palm oil futures closed between 20 and 68 ringgit per tonne lower, reflecting profit taking after a surge driven by fears that year-end monsoon rains could hamper production and transport.
"The market still feels bullish and overall prices still climb, also on the back of the strength in energy markets lately which could boost biodiesel demand," one broker said. At 1730 GMT CBOT soyoil futures were between 0.32 and 0.47 cents per lb up on technical buying with Chicago traders buying soyoil futures and selling soymeal contracts.
EU rapeoil was offered between two and five euros per tonne lower following technical weakness in rapeseed futures and due to a weak dollar, which weighs on euro-priced products. Nearby coconut oil and most positions in palmkernel oil were firmer on worries over availability of material due to arrive into Europe and concerns over falling production. Coconut oil was offered between flat and $15 a tonne up and palmkernel oil gained between $10 and $25. Dollar weakness also supported dollar-priced products.
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