Palm oil on the European vegetable oils market firmed again on Thursday following slightly stronger Malaysian palm oil futures and gains in CBOT soyaoil futures. Asking prices for palm oil were between unchanged and $5 a tonne higher after Malaysian palm oil futures closed between four and eight ringgits per tonne up.
"The palm oil market drifted a bit today with a whiff of bullish sentiments on ideas that the La Nina weather pattern could reduce production around the end of the year," one broker said. At 1630 CBOT, soyaoil futures were between 0.33 and 0.36 cents per lb higher, supported by technical buying and higher than expected weekly export sales. Firmer energy markets added to the strength.
Prompt EU rapeoil was offered 11 to 12 euros higher on technicals and because of underlying demand, while more deferred positions were two to four euros up from Wednesday, mostly on the back of a stronger dollar, which underpins euro-priced products. Higher rapeseed futures, on technical buying, also supported rapeoil.
Concerns over tight copra supplies caused sellers to withdraw from the market on front positions, while prices for early next year were $35 a tonne higher. Palmkernel oil was quoted flat to $5 a tonne down on the back of a stronger dollar, which weighs on products quoted in that currency and because of support from stronger palm oil.
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