Palm oil on the European vegetable oils market continued to ease on Friday on the back of a weak ringgit and because of ongoing worries over the escalating trade dispute between the US and China. Asking prices for palm oil were between unchanged and $7.50 a tonne lower as the weaker ringgit weighed on products priced in dollars. Malaysian palm oil futures closed between eight ringgit per tonne higher and five ringgit lower.
Overall bearish sentiment offset support by the weaker ringgit on hopes for improved export demand as it makes palm oil cheaper for foreign buyers. At 1630 GMT, CBOT soyoil futures were between 0.17 and 0.21 cents per lb lower on technicals as CBOT traders sold soymeal futures on the back of the US/China trade war jitters, and bought soyoil contracts.
EU rapeoil was offered between one and five euros per tonne higher on ongoing worries over the current hot and dry spell which could hurt the 2018 rapeseed crop. A strong dollar also underpinned products priced in euros. "It looks like there are a lot of shorts on the November/January rapeoil positions, which could set the market on fire soon," one broker said.
Lauric oils were offered between $10 a tonne down from Thursday and $5 up, supported by underlying demand, while a strong dollar limited gains as it weighs on products priced in that currency. The spread between coconut oil and the cheaper palmkernel oil was $15 a tonne for September/October shipment.
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