ROTTERDAM: Asking prices for most products on the European vegetable oils market rose on Friday following renewed weather worries in Chicago and expectations that lower palm oil production will reduce Malaysian stocks.
"Weather is the dominant factor, and as we are nearing harvest time any other forecast will make soycomplex futures swing, which often leads to caution among European players, who do not like trading weather," one broker said.
At 1630 GMT CBOT soyoil futures were between 0.12 and 0.39 cents per lb higher on concern that drought in the US soybean belt could reduce yields.
EU rapeoil was offered between 1 euro per tonne down and 5 euros up from Thursday in sympathy with CBOT soyoil and steadier rapeseed futures, but gains were limited by a dip in the dollar, which weighs on euro-priced products.
Nov/Jan EU rapeoil changed hands at 744 euros per tonne fob exmill, up 1 euro from Thursday.
EU sunoil was offered around $10 a tonne up from Thursday, in sympathy with soyoil and rapeoil and aided by some follow-through purchases. Oct/Dec traded $10 a tonne up at between $940 and $947.50 a tonne extank. Jan/March traded unchanged at $940, and April/June fetched $945 and $950, up $5.
Palm oil was offered between $7.50 and $15 a tonne up from Thursday, underpinned by CBOT soyoil and a weaker dollar, which supported dollar-priced products. It also got support from Malaysian palm oil futures, which closed between 7 and 16 ringgit per tonne up on growers' estimates that output fell in August, raising hopes that Malaysian palm oil stocks will tighten.
October delivery RBD palm olein traded $17.50 a tonne up from Thursday at $762.50 a tonne fob Malaysia, while Nov/Dec changed hands between $745 and $748.50, Jan/March traded $12.50 up between $732.50 and $747.50, and April/June fetched $747.50 fob.
Lauric oils were offered between $10 down and $5 a tonne up from Thursday after palmkernel oil changed hands at $875 a tonne cif Rotterdam for afloat material and Nov/Dec at $870. Coconut oil was offered at a $30 premium over palmkernel oil.
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