Palm oil on the European vegetable oils market edged higher on Thursday, tracking gains in Malaysian palm oil futures, which benefited from short covering, and CBOT soyaoil futures. Asking prices for palm oil were mostly between unchanged and $2.50 a tonne higher after Malaysian palm oil futures closed between four ringgit per tonne down and 11 ringgit up.
At 1630 GMT, CBOT soyaoil futures were up between 0.25 and 0.32 cents per lb, tracking sharp gains in CBOT soyabeans on news that China will send a delegation to the United States for trade talks in late August, buoying hopes that tariffs will be lifted. Firmer energy markets also supported soyaoil prices. Nearby EU rapeoil rallied on technicals and short covering, with asking prices between nine and 11 euros per tonne higher. Strong Chicago soyaoil also added to the strength. More distant material was mostly offered between one euro down and five euros up from Wednesday. A weaker dollar weighed on euro-priced products. Lauric oils were quoted between $10 a tonne up and $10 down from Wednesday, supported by the firmer tone in palm oil and a weaker dollar, which underpins products quoted in that currency.
A weak ringgit and lack of demand weighed. The spread between coconut oil and the usual cheaper palmkernel oil was at even money for September/October shipment. On more distant positions, coconut oil was still more expensive.
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