Palm oil on the European vegetable oils market continued to ease on Thursday, tracking Malaysian palm oil futures on the back of slack export demand, weak energy markets and lower rival vegetable oils. "The European cash market followed Malaysia and the stronger dollar also weighed. Business was not very active as the market heads for the pre-Christmas holiday doldrums," one broker said.
Palm oil was mostly offered between unchanged and $12.50 a tonne down from Wednesday after Malaysian palm oil futures closed between eight and 12 ringgit per tonne down, pressured by falling energy prices and declines in rival soyaoil as well as concerns over slowing exports. At 1730 GMT CBOT soyaoil futures were between 0.35 and 0.54 cents per lb down on expectations that Argentina's move to devalue its currency will unleash Argentine farmer sales. Easier energy prices also weighed. EU rapeoil was offered between unchanged and two euros per tonne down, tracking easier Chicago soyaoil futures and pressured by slightly lower rapeseed futures. A strong dollar, which underpins euro-priced products, limited losses.
Lauric oils were hardly changed with concerns over El Nino cutting production and copra supplies after Typhoon Nona (Melor) hit the Philippines last weekend, underpinning prices and outweighing bearish sentiment in palm oil.
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