Palm oil on the European vegetable oils market firmed on Monday on technical buying in futures markets towards the end of the year, buoyed by concerns about tight nearby supplies. Palm oil was offered between unchanged and $12.50 a tonne up from Friday after Malaysian palm oil closed between 37 and 50 ringgit per tonne higher, helped by tight supplies and price forecasts by leading analysts at an industry conference on Friday.
"Towards the end of the year prices are usually friendly due to technical (factors) and concerns about availability and logistic difficulties around the holiday season," one broker said. At 1730 GMT CBOT soyaoil futures were between 0.04 and 0.16 cents per lb up, tracking stronger Chicago soyabeans on a mix of speculative and technical buying, and export demand for US soyabeans. Strong energy markets also supported soyaoil.
EU rapeoil was offered between 11 and 15 euros per tonne higher, tracking Chicago soyaoil and firmer European rapeseed futures. Rising energy markets were also supportive because this can spur demand from biodiesel producers. Lauric oils were mostly offered between $15 and $50 a tonne up, tracking the firmer trend in rival oils and supported by worries of tight nearby supplies and some underlying demand.
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