Palm oil prices on the European vegetable oils market firmed on Wednesday as Malaysian palm oil futures rebounded on bargain buying. Asking prices for palm oil were between $5 and $25 a tonne up from Tuesday after Malaysian palm oil futures closed between seven and 36 ringgit per tonne up, as bargain hunters shrugged off market expectations of higher supplies and weak demand.
"After the market came down substantially in the last couple of days it was to be expected that we would see an upward reaction," one broker said. At 1730 GMT CBOT soyaoil futures were between 0.04 cents per lb down and 0.09 cents up, tracking weaker Chicago soyabeans because of technical selling on the back of an outlook for a bumper South American soyabean crop. Weaker energy markets also weighed.
EU rapeoil was offered at between two euros per tonne down and three euros up, with both weaker rapeseed futures and lower energy markets weighing. Underlying demand for new crop material, starting from August 2017, underpinned positions in the second half of the year. A strong dollar and the willingness to sell in the steeply falling lauric oil market pushed levels even lower by between $40 and $55 a tonne.
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