Palm oil rises on European vegoils market

Palm oil on the European vegetable oils market rose on Friday on the back of a technical rebound in Malaysian palm oil futures following recent losses on bearish industry data. Asking prices for palm oil were between $2.50 and $7.50 a tonne higher after Malaysian palm oil futures closed between 38 and 68 ringgit per tonne up, also supported by expectations that production will decline this month. One broker, however, said slow export demand could temper gains in palm oil.
"Palm oil production usually tapers off at the end of the year and into the first quarter of the next year, but export demand also lacks. So it is uncertain if exports will outpace output in December," one broker said. At 1830 GMT, CBOT soyaoil futures were between 0.18 cents per lb down and 0.33 cents up, well off the day's highs on a mild technical bounce in Chicago soyabeans and supported by strength in palm oil futures. Beneficial rains in the Argentine soyabean belt weighed. EU rapeoil was quoted between five and nine euros per tonne higher, following early gains in CBOT soyaoil futures and a technical upward correction in rapeseed futures.