Palm oil on the European vegetable oils market rose on Wednesday, tracking gains in Malaysian palm oil futures on the back of expectations for lower production during June. Palm oil output in Malaysia, the world's second largest producer, is expected to decline or stay flat in June, due to the Ramadan and the Eid-u-Fitr holiday period. Asking prices for palm oil were between unchanged and $10 a tonne higher after Malaysian palm oil futures closed between seven and 32 ringgit per tonne up.
"If June Malaysian palm oil exports exceed production we could see a declining stocks number, which is bullish. But exports were not all that exciting during June," one broker said. At 1630 GMT, CBOT soyaoil futures were between 0.11 and 0.32 cents per lb lower. They dipped more than a cent just after the US Environmental Protection Agency (EPA) was set to propose requiring fuel companies to blend 19.24 billion gallons of renewable fuels in the country's fuel supply, down slightly from 2017 levels, according to two industry sources. Sharply lower energy markets also weighed on soyaoil futures.