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Palm oil on the European vegetable oils market continued to firm on Thursday, following gains in Malaysian palm oil futures on the back of follow-through technical buying and because of slightly higher export numbers. Asking prices for palm oil were between $5 and $10 a tonne up from Wednesday after Malaysian palm oil futures closed between 32 and 49 ringgit per tonne higher, as Malaysian palm oil exports for the first 25 days of July were around 5 percent up from the same period in June.
At 1630 GMT, CBOT soyaoil futures were between 0.02 cents per lb lower and 0.05 cents higher, tracking stronger Chicago soyabean futures on technical buying and hopes that a trade deal with the EU could improve US soyabean sales to Europe. Higher energy markets were also supportive. CBOT traders were buying soyameal contracts and selling soyaoil futures, which limited gains. EU rapeoil was offered between 5 and 10 euros per tonne higher on improved technical demand and because of concerns over the rapeseed crop due to a recent hot and dry spell in Europe.
Prices were also underpinned by stronger energy markets, which could boost demand for vegetable oils from biodiesel makers. Lauric oils were mostly offered between $10 and $25 a tonne higher because of improved buying interest and due to strength in palm oil futures.

Copyright Reuters, 2018

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