ROTTERDAM: Palm oil on the European vegetable oils market was stronger on Tuesday, tracking sharp gains in Malaysian palm oil futures, which rose on a lower output outlook and on stronger rival soyoil.
Asking prices for palm oil were mostly between $10 and $17.50 per tonne higher after Malaysian palm oil futures closed between 52 and 73 ringgit per tonne up, supported by expectations of lower than forecast production in July and tracking strong gains in CBOT soyoil.
"It still remains a tug of war between production and exports whether Malaysian stocks will rise or fall in July. Malaysian palm oil exports during the first 25 days of July were up from the same period in June, but only by about four percent," one broker said.
At 1630 GMT CBOT soyoil futures were between 0.13 and 0.22 cents per lb higher on technical buying with Chicago traders selling soymeal futures and buying back soyoil contracts. A rally in energy markets also supported soyoil futures.
EU rapeoil was mostly offered between unchanged and three euros per tonne lower, following the weaker trend in rapeseed futures, as forecasts for crop-boosting rains in the US Midwest weighed.
Lauric oils were offered between $10 and $65 a tonne up from Monday, tracking gains in rivals palm oil and soyoil and supported by some buying interest. The spread between coconut oil and the cheaper palmkernel oil was $550 a tonne for August/September shipment.
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