Palm oil on the European vegetable oils market eased on Friday on expectations for a rise in Malaysian palm oil production and because of a technical dip in rival CBOT soyaoil futures. Asking prices for palm oil were between unchanged and $7.50 a tonne down after Malaysian palm oil futures closed between 11 and 20 ringgit per tonne lower.
"Dealers believe palm oil output in October will be higher than the previous month and demand for palm oil will ease off towards winter in favour of oils that stay liquid at colder temperatures," one broker said. "That could cause an increase in already pretty huge stocks."
At 1700 CBOT soyaoil futures were between 0.15 and 0.39 cent per lb down, tracking lower Chicago soyabean futures on technical selling and because of profit-taking following recent gains. EU rapeoil was mostly offered between unchanged and 10 euros per tonne lower, following weaker Chicago soyaoil and down because of technical weakness in rapeseed futures.
Coconut oil was offered between $5 and $15 a tonne up from Thursday on underlying demand. Palmkernel followed the weaker trend in palm oil and was pressured by a lower ringgit and lack of buyers. The spread between coconut oil and cheaper palmkernel oil was $150 a tonne for December/January shipment.
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