ROTTERDAM: Palm oil on the European vegetable oils market was offered lower on Monday, tracking weaker Malaysian palm oil futures on expectations of a bearish MPOB supply/demand report, due on Friday.
Asking prices for palm oil were between $2.50 and $10 a tonne lower after Malaysian palm oil futures closed between 11 and 24 ringgit per tonne down.
"Sentiment in the palm oil market has turned bearish on expectations growth in production during October will outpace that of demand and ending stocks will rise further," one broker said.
At 1700 GMT CBOT soyoil futures were between 0.05 and 0.43 cents per lb higher on a technical bounce following losses on Friday. A rally in energy markets also underpinned soyoil futures.
Front positions EU rapeoil continued to be strong with asking prices between 13 and 15 euros per tonne up from Friday on a technical squeeze, while more deferred contracts were three to four euros higher, tracking stronger CBOT soyoil futures. Gains in rapeseed futures on the back as sharply higher energy markets could spark demand for both seeds and oil from biodiesel producers.
Coconut oil was quoted between $20 and $50 a tonne down to find buying interest and due to the weaker trend in palm oil. Palmkernel oil also fell with palm oil with offerings between $19 and $25 a tonne lower. The spread between coconut oil and cheaper palmkernel oil was $125 a tonne for December/January shipment.
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