Palm oil prices on the European vegetable oils market were higher on Friday buoyed by a climb in Malaysian futures to a two-month peak earlier in the day. Both crude palm oil and RBD palm olein asking prices ranged from $7.50 to $10.00 a tonne higher. Malaysian palm oil futures jumped 2.7 percent on Friday, as forecasts of rain in key producing areas heightened concerns over supply disruptions in the monsoon season.
Malaysia's monthly palm oil data on Thursday showed steep decline in production as well as exports in November. Liquid oils - rapeoil, soyaoil and sunoil - were marked higher following a rise of more than 2 percent in CBOT soyaoil on Thursday, with the market underpinned by the prospect of more demand from the biodiesel sector.
"Soyabean oil is the largest feedstock to produce biodiesel and the required yearly increasing biodiesel blending volumes support demand for soyabean oil," Tiberius Asset Management said in a report issued on Friday. "We expect to see soyabean oil outperforming soyabeans and soyabean meal during the next months." EU rapeoil for February/April delivery changed hands at 747 euros a tonne, up 7 euros from a traded level on Thursday.
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