Palm oil on the European vegetable oils market edged higher on Friday, supported by a weak dollar and by CBOT soyaoil that strengthened in a technical correction after prices had been dented by a rise production forecasts. Vegetable oil prices were also underpinned by a rally in energy markets, suggesting there could be improved demand from biodiesel producers.
Asking prices for palm oil were between unchanged and $2.50 a tonne up after Malaysian palm oil futures were virtually unchanged at the close at between 3 ringgit a tonne up and 5 ringgit down as expectations for increasing production offset overnight gains in CBOT soyaoil. CBOT soyaoil futures were between 0.11 and 0.38 cents per lb higher at 1630 GMT, buoyed by steep gains in energy prices and a mild technical bounce in Chicago soyabeans after losses prompted by a bumper outlook for the US soyabean harvest.
EU rapeoil was quoted between unchanged and 2 euros a tonne up from Thursday, tracking Chicago soyaoil and supported by the strong energy markets. A weaker dollar, which weighs on euro-priced products, limited gains. Lauric oils were offered between $5 a tonne up and $5 down, finding support from rival soya and palm oil and underpinned by the weaker dollar, which supports products quoted in that currency. A lack of demand weighed on prices. The spread between coconut oil and the cheaper palmkernel oil was $30 a tonne for September/October shipment.
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