A further drop in palm oil prices triggered some early deals on Europe's vegetable oils market on Friday before prices steadied and discouraged buyers. Palm products were initially offered lower in Europe to factor in Thursday's four-month low on Malaysian futures and official data showing a rise in Malaysian stocks last month.
Palm olein saw a flurry of trades (see below) after prices were offered between $2.50 and $7.50 a tonne down from Thursday. But a firm close in Malaysia, as strong export figures took the attention away from rising stocks, encouraged sellers to adjust prices upwards, while a dollar rally also made buyers more reluctant.
"People were expecting the market to go down with the MPOB (Malaysian Palm Oil Board) stocks data but it held up with the exports," one broker said. A sharp drop in the euro helped stir some interest in the euro-denominated rapeseed oil, with a couple of afternoon trades reported.
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