Palm oil on the European vegetable oils market was mostly offered firmer on Friday, supported by a weaker dollar and a recovery in CBOT soyaoil following a steep fall in the Brazilian real the day before. Asking prices for palm oil were mostly offered between unchanged and $10 a tonne up from Thursday after Malaysian palm oil futures closed between 14 ringgit per tonne higher and 10 ringgit lower.
Malaysian futures had rebounded in late trade on expectations of increased export demand. "After Chicago fell steeply on a sharp drop in the real it was almost certain a rebound would follow," one broker said. At 1630 GMT CBOT soyaoil futures were between 0.33 and 0.50 cents per lb higher, after shedding around 0.70 cents at the close on Thursday on expectations that the sharp fall in the Brazilian currency could encourage Brazilian farmers to increase cash sales of their record-large soyabean harvest.
EU rapeoil was offered between one and five euros per tonne up from Thursday, tracking gains in CBOT soyaoil and because of bargain buying in rapeseed futures. Sellers were offering coconut oil around $25 a tonne higher on the back of a weak dollar, which supports products priced in that currency. Palmkernel oil was quoted between flat and $5 a tonne up, also because of the dollar and following the firmer trend in palm oil.
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