Palm oil on the European vegetable oils market edged higher on Tuesday following a stronger ringgit, which at the same time weighed on Malaysian palm oil futures and limited gains in the cash market. A strong ringgit makes palm oil more expensive for foreign buyers, which is bearish for futures as it could dampen export demand.
Asking prices for palm oil were mostly between unchanged and $5 a tonne higher after Malaysian palm oil futures closed between five ringgit a tonne down and two ringgit up. At 1730 GMT, CBOT soyaoil futures were between 0.04 and 0.13 cents per lb higher on technicals and positioning ahead of Thursday's USDA planting intentions and quarterly stocks reports. Slightly firmer energy markets also supported soyaoil futures.
EU rapeoil was quoted between unchanged and two euros per tonne up from Monday, following the firmer trend in Chicago soyaoil futures and supported by stronger rapeseed futures on concerns over a tighter global oilseeds supply outlook. Lauric oils were offered between flat and $5 a tonne higher, supported by the stronger ringgit.
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