Palm oil on the European vegetable oils market edged lower on Thursday, tracking lower Malaysian palm oil futures that were hit by a stronger ringgit. A firmer ringgit makes palm oil more expensive for foreign buyers and could further reduce already weak export demand. Asking prices for palm oil were mostly between unchanged and $5 a tonne lower, with the same strong ringgit capping losses. Malaysian palm oil futures closed between eight and 28 ringgit per tonne down. Profit taking following recent gains also weighed.
"Talk about decreasing production has supported the palm oil market for a bit. Exports, although slightly improved during the last five days, are still down from the same period in December, which could in the end lead to an increase in already huge palm oil stocks," one broker said. At 1830 GMT, CBOT soyaoil futures were between flat and 0.18 cents per lb higher on worries over dry conditions in Argentina's crop belt and due to support from firmer energy markets.
EU rapeoil was quoted between two and five euros per tonne lower on the back of a further dip in the dollar, which weighs on euro-priced products and because of follow-through technical weakness in rapeseed futures. Coconut oil was offered $15 a tonne higher in a flat market until June/July shipment, pressured by a lack of buyers. Palmkernel oil was quoted between unchanged and $10 a tonne higher because of a stronger ringgit, but the absence of buying interest limited gains.
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