Markets

Palm oil up on mild rebound

ROTTERDAM : Palm oil on the European vegetable oil market recovered a little on Tuesday in a mild technical correction o

Published June 28, 2011 Updated June 28, 2011 05:17pm

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By Muhammad Iqbal

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"Malaysian palm oil futures were firmer today on hopes for a pick up in demand and cash markets followed but buying interest lacked as buyers did not want to pay this rise, expecting prices to drop even further on growing palm oil stocks and good crop weather in Europe and the US," one broker said.

Palm oil was offered between $10 and $12.50 a tonne, up from Monday after Malaysian palm oil futures closed between three and 22 ringgit per tonne up on belief that demand could pick up before the Ramadan period in August.

August delivery RBD palm olein traded at $1,082.50 a tonne fob Malaysia and April/June changed hands at $1,070 a tonne fob, unchanged from Monday. Crude palm oil traded at $1,065 a tonne cif Rotterdam for July shipment, up $5 from Monday and Oct/Dec fetched $1,060 cif.

At 1630 GMT CBOT soyoil futures gained between 0.22 and 0.32 cents per lb on bargain hunting and a recovery in mineral oil prices.

Liquid oils were offered flat to five euros per tonne up from Monday following the trend in CBOT soyoil and mineral oil plus a rebound in rapeseed futures, while gains were limited by a weaker dollar which weighed on dollar-priced products.

EU rapeoil changed hands at 944 euros a tonne fob exmill for Aug/Oct and Nov/Jan traded between 940 and 945 euros.

EU sunoil was offered flat to $15 a tonne down after Oct/Dec traded at $1,300 a tonne extank.

Lauric oils continued to ease with sellers shedding another $40 to $50 on an easier supply situation and a correction in price toward rival oils. Buyers were still showing little interest and no deals were seen.

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