Palm oil on the European vegetable oils market eased on Wednesday, tracking weaker Malaysian palm oil futures on forecasts for an increase in Malaysian production and falling export demand. Asking prices for palm oil were between unchanged and $17.50 a tonne lower after Malaysian palm oil futures closed between 12 and 50 ringgit lower.
"The market was nervously quiet the players looking at Chicago for a direction because a combination of large short positions on the CBOT and forecasts for hot and dry weather in the US Midwest could be explosive," one broker said. At 1630 GMT CBOT soyaoil futures were between 0.02 and 0.15 cents per lb lower on technical selling as Chicago dealers bought soyameal and sold soyaoil contracts. Sharply weaker energy markets also weighed.
EU rapeoil was offered between unchanged and three euros per tonne higher, supported by stronger rapeseed futures, which took their cue from higher Chicago soyabeans. A stronger dollar also underpinned euro-priced rapeoil. Lauric oils were quoted between $10 and $40 a tonne up as prices continued to see-saw with no clear drivers. Buyers were still hard to find.
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