Palm oil on the European vegetable oils market eased on Friday, tracking Malaysian palm oil futures, which dipped on a strong ringgit and on expectations for increasing production in Malaysia. A strong ringgit makes palm oil more expensive for foreign buyers, which could dampen export demand. At the same time the currency underpins palm oil prices quoted in dollars.
Asking prices for palm oil were between $2.50 and $10 a tonne lower, with losses somewhat cushioned by the stronger ringgit. Malaysian palm oil futures closed between 18 and 24 ringgit down. At 1630 GMT, CBOT soyaoil futures were between 0.08 and 0.22 cents per lb lower on technicals, with Chicago traders selling soyaoil contracts and buying back soyameal futures on short-covering. A rally in energy markets limited losses.
EU rapeoil was offered between flat and six euros per tonne lower, tracking weaker CBOT soyaoil futures, and a weaker dollar also weighed on products priced in euros. Lauric oils were mostly offered between unchanged and $15 a tonne down from Thursday, following easier palm oil and because sellers lowered asking prices to find buyers, which were still hard to find.
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