Palm oil on the European vegetable oils market eased on Friday, reflecting a strong dollar and tracking weaker Malaysian palm oil futures because of a firmer ringgit. "It was all about the currencies ahead of the weekend," one broker said. "The strong dollar weighed on dollar-priced material, while the ringgit did the same on palm oil futures, but slightly supported palm prices on the European cash market.
"A weaker euro again supported products quoted in that currency." Palm oil was offered between unchanged and down $12.50 a tonne, after Malaysian palm oil futures closed between 42 and 46 ringgit per tonne lower, on a stronger ringgit and slow demand. At 1630 GMT CBOT soyoil futures were between 0.19 and 0.33 cents per lb down on the strength of the dollar and concerns about the buying power of China. Slightly weaker energy markets also weighed.
EU rapeoil was quoted hardly changed from Thursday with offerings between 1 euro up and 1 euro down. Gains on the back of a weaker euro were offset by weakness in both CBOT soyoil futures and European rapeseed futures. Coconut oil was offered around $5 a tonne up concerns over supplies following Typhoon Koppu, while palmkernel oil was quoted around $15 a tonne down, tracking palm oil futures.
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