ROTTERDAM: Palm oil on the European vegetable oils market was firmer on Wednesday because of worries that a potential El Nino weather pattern could return this year, causing dryness which could cut palm fruit yields.
Asking prices for palm oil were between $7.50 and $17.50 a tonne higher after Malaysian palm oil futures closed between 21 and 77 ringgit per tonne up on support from improving exports and strong physical prices.
"Palm oil futures gained on export optimism," one broker said. "In the best scenario, exports went up from 25 percent down during the first 10 days (of March) to one percent up in the first 15 days of March compared to (the same periods in February) the worst month since April 2016, that is still not very much," the broker said.
At 1730 GMT CBOT soyoil futures were between 0.03 cents per lb up and 0.15 cents down on a larger NOPA February soyoil stocks figure.
EU rapeoil was offered between five and 10 euros per tonne up from Tuesday, tracking firmer rapeseed futures, which were supported by a technical rebound. A strong dollar also underpinned euro-priced products.
Lauric oils were offered between $5 a tonne down and $20 higher, mostly tracking the trend in palm oil on concerns about a new El Nino pattern. Asking prices were hardly tested.
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