Palm oil on the European vegetable oils market was offered firmer on Thursday, supported by improved buying interest and small gains in Malaysian palm oil futures on short-covering and improved March demand. Malaysia reduced export tax to zero in January, but the measure ends on April 7, which could prompt palm oil deals before that date.
Asking prices for palm oil were mostly between $2.50 and $5 a tonne up from Wednesday after Malaysian palm oil futures closed between 7 ringgit a tonne higher and 2 ringgit lower. "There was some covering today and it could well be because of the end of the Malaysian tax cut. Exports during the first 15 days of March improved substantially from the March 1-10 numbers and that seems to support expectations for improved demand this month," one broker said.
CBOT soyaoil futures were between 0.34 and 0.41 cents per lb higher at 1730 GMT, buoyed by uncertain Argentine crop prospects and technical buying. Stronger energy markets also underpinned soyaoil futures. EU rapeoil was mostly quoted between flat and 4 euros a tonne higher, tracking gains in Chicago soyaoil futures and supported by nearby short-covering and stronger rapeseed futures, which took their cue from stronger CBOT soyabean futures.
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