Palm oil on the European vegetable oils market eased on Wednesday, following technical selling in Malaysian palm oil futures. "It was a round of profit-taking all around today with weaker soyaoil futures in Chicago and lower energy markets, dragging the European cash market down also," one broker said.
Palm oil was mostly offered between $7.50 and $12.50 a tonne lower. Malaysian palm oil futures closed between three and 17 ringgit per tonne down as the market corrected on a stronger ringgit and declines in competing vegetable oils traded in overseas markets. At 1730 GMT, CBOT soyaoil futures were between 0.48 and 0.59 cents per lb down on technical selling following recent gains because of short-covering and a strong Brazilian real, which makes US soyabeans more competitive. The Brazilian currency eased on Wednesday. Weak energy markets also weighed. EU rapeoil was offered between four and six euros per tonne down from Tuesday, tracking weaker CBOT soyaoil and lower rapeseed futures, which followed the trend in Chicago soyabeans.