Palm oil on the European vegetable oils market was offered firmer on Friday, tracking higher Malaysian palm oil futures on the back of expected demand growth. Futures traders expect palm oil demand from India and China to pick up ahead of the Diwali and mid-Autumn festivals in October, lifting asking prices to between $5 and $12.50 a tonne up. Malaysian palm oil futures had closed between 13 ringgit and 27 ringgit a tonne up.
CBOT soyaoil futures were between 0.25 cents and 0.46 cents per lb up by 1600 GMT on technical buying, also supported by firmer energy markets. Stronger Malaysian palm oil also underpinned soyaoil futures. "During the week palm oil futures gained mostly on the back of soyaoil futures, so it a bit like a dog chasing its own tail," one broker said.
EU rapeoil was mostly offered between unchanged and 3 euros a tonne up, supported by stronger CBOT soyaoil and firmer rapeseed futures because of slow farmer selling. Lauric oils were mostly quoted between unchanged and $15 a tonne higher, tracking gains in palm oil and supported by underlying demand. Some dealers noted that a little protection was taken ahead of the upcoming typhoon season.
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