Palm oil in Europe eased slightly in very thin trade on Thursday as it came off highs following a rally late on Wednesday on soaring CBOT soyoil futures due to a bullish 2017 US biofuels target.The market was slow overall because of a lack of direction from Chicago due to Thanksgiving Day and because of a large trade dinner in Hamburg on Thursday evening.
At the end of the day palm oil was offered around $25 a tonne down from Wednesday when the market rose as much as $52.50 a tonne ahead of Malaysia. Malaysian palm oil closed between 37 and 51 ringgit per tonne up on the back of Wednesday's soaring Chicago soyoil futures. "After Wednesday's madness on Chicago because of the biodiesel targets and the soaring prices in Europe the dust settled a bit and prices came back to more realistic levels. A lack of participation aided to the lacklustre mood on the cash market," one broker said.
EU rapeoil was also offered off the day's highs at between unchanged and six euros per tonne up from Wednesday, supported by last night's CBOT soyoil and a strong dollar, which underpins products priced in euros. Demand at levels well under initial asking prices and weaker rapeseed futures, on a technical correction from Wednesday, limited the gains. Lauric oils were offered between $10 and $20 a tonne up from Wednesday, mostly tracking firmer palm oil and following the trend in other edible oils. Coconut oil is usually not as sensitive to energy-related movements or news as it is not as widely used in biodiesel.