Palm oil on the European vegetable oils market rose on Thursday, following stronger Malaysian palm oil futures on expectations of a slowdown in output growth and due to overnight gains in CBOT soyaoil on US import duties imposed on soya-based biodiesel from Argentina. Asking prices for palm oil were between $5 and $10 a tonne higher after Malaysian palm oil futures closed between 27 and 41 ringgit up.
"Palm oil production growth may slow, but exports are not seeming to pick up either and it could well be that ending stocks rise in August," one broker said. At 1630 GMT, CBOT soyaoil futures were between 0.01 and 0.18 cents per lb down on technical selling and profit taking following sharp gains on Wednesday after the US government moved to impose steep duties on imports of soya-based biodiesel from Argentina. A dip in energy markets also weighed on soyaoil futures.
EU rapeoil was quoted between one and three euros per tonne higher following firmer rapeseed futures on slow farmer selling. It was also tracking stronger CBOT soyabeans on lower pod count findings on US crop tour as well as strong export demand and recent gains in soyaoil futures. Lower energy prices curbed gains as this could dampen rapeoil demand from biodiesel producers. Lauric oils were offered between $5 and $40 a tonne up from Wednesday, tracking gains in palm oil. Concerns over supplies as the typhoon season starts also underpinned prices.
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