Palm oil on the European vegetable oils market rose on Monday on the back of a bullish June MPOB supply and demand report and a rally in the CBOT soyacomplex because of worries that hot and dry weather in parts of the US Midwest could damage crops. Asking prices for palm oil were between unchanged and $25 a tonne higher after Malaysian palm oil futures closed between 28 and 42 ringgit a tonne up.
"June Malaysian palm oil production was lower because of holidays around Ramadan, which caused a drop in ending stocks. Expectations are that July output will improve again but that might not be the case with exports," one broker said.
CBOT soyaoil futures were between 0.38 and 0.92 cents per lb higher at 1630 GMT, tracking a rally in Chicago soyabeans on weather concerns. Stronger energy markets also offered support. EU rapeoil rallied with CBOT soyaoil and was offered between $10 and $20 a tonne up from Friday. Sharply higher rapeseed futures, tracking the trend CBOT in soyabean futures on concerns over global oilseed supplies, also underpinned rapeoil. Coconut oil was quoted between flat and $15 a tonne down on lack of demand, while palmkernel oil was quoted between $5 and $30 a tonne higher.
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