Palm oil prices on the European vegetable oils market rose on Wednesday following a recent run of bullish news, including lower stocks for both US soyabeans and Malaysian palm oil.
"USDA supply/demand figures showed lower ending stocks for soyabeans and on Monday MPOB said palm oil stocks dropped almost 10 percent. On top of that there were lower estimates on the Brazilian soyabean crop. That all boosted technical buying and short-covering," one broker said.
Palm oil was mostly offered between $5 and $10 a tonne up from Tuesday after Malaysian palm oil futures closed between four and 36 ringgit a tonne higher as traders were keen to lock in hedges for physical crude palm oil at these levels.
At 1730GMT CBOT soyaoil futures were between 0.17 and 0.45 cents per pound up on technical buying and short-covering flowing Tuesday's bullishly interpreted USDA data.
Liquid oils -rapeoil, soyaoil and sunoil- were offered between unchanged and four euros per tonne up, tracking Chicago soyaoil, while slightly weaker rapeseed futures limited gains.
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