Palm oil on the European vegetable oils market continued to ease on Thursday, tracking weaker rival soyaoil, which also dragged down Malaysian palm oil futures along with a dip in palm olein on China's Dalian Commodity Exchange. Asking prices for palm oil were between $2.50 and $12.50 a tonne down from Wednesday after Malaysian palm oil futures closed between 33 and 44 ringgit lower.
"Palm oil on the cash market was also pressured by a weaker ringgit, which makes palm oil cheaper for buyers holding foreign currencies. The fall in Dalian olein seemed to be the main trigger for weakness in futures," one broker said. At 1630 GMT CBOT, soyaoil futures were between 0.30 and 0.39 cents per lb lower with Chicago soyabeans as the US harvest expands amid favourable weather in the Midwest. Traders were also adjusting positions ahead of the USDA's quarterly stocks report on Friday. A dip in energy markets weighed too.
EU rapeoil was offered between one and five euros per tonne lower, following easier CBOT soyaoil futures and because of lower rapeseed futures on the back of a brighter world oilseed supply outlook. Lauric oils were offered between unchanged and $45 a tonne down from Wednesday, tracking weaker palm oil and because of a weaker ringgit. The lower levels triggered some buying interest. The spread between coconut oil and the cheaper palmkernel oil narrowed to $85 a tonne per tonne for October/November shipment.
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