Palm oil on the European vegetable oils market rose on Tuesday in response to a firmer ringgit and stronger Malaysian palm oil futures on the back of hopes for improved demand. In January, Malaysia introduced a zero export tax on palm oil, but that measure ends on April 7, which could prompt buyers to buy palm oil before that date.
Asking prices for palm oil were between $5 and $10 up from Monday after Malaysian palm oil futures closed between 20 and 35 ringgit per tonne higher. At 1730 GMT, CBOT soyaoil futures were between 0.31 and 0.41 cents per lb higher, following Chicago soyabeans, which were supported by short covering and worries about the size of Argentine's drought-hit soyabean harvest.
EU rapeoil was quoted between four euros lower and four euros higher, with nearby positions under pressure from lack of demand and a weaker dollar. Stronger CBOT soyaoil futures and technical strength in rapeseed futures underpinned contracts further forward. Lauric oils were quoted between $10 and $40 a tonne higher, supported by stronger palm oil and a firmer ringgit. A dip in the dollar also added to the strength in products quoted in that currency.
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