ROTTERDAM: Palm oil on the European vegetable oils market rose slightly on Friday, tracking unexpected strength in Malaysian palm oil futures following bearish market data.
"There was no real fundamental reason for Malaysian palm oil futures to rise today. It seems that some serious positions needed to be defended, especially so because futures were lower all session until the last half hour of trade," one broker said.
Asking prices for palm oil were mostly between unchanged and $5 per tonne higher after Malaysian palm oil futures closed between seven and 20 ringgit per tonne up.
At 1630 GMT CBOT soyoil futures were between 0.02 and 0.17 cents per lb lower on improving crop weather and the outlook for a bumper US soybean harvest this year. Easier energy markets also weighed.
EU rapeoil was offered between three and five euros per tonne down from Thursday, following easier Chicago soyoil futures and a weaker dollar, which weighs on euro-priced products. Stronger rapeseed futures, up on bargain buying, limited losses.
Coconut oil was offered between unchanged and $10 a tonne lower on lack of demand and tracking weaker soyoil, while offerings for palmkernel oil were between $10 and $15 higher, supported by strength in palm oil. The spread between coconut oil and the cheaper palmkernel oil was $430 a tonne for September/October shipment.
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