Palm oil on the European vegetable oils market was offered at mixed prices on Wednesday with a strong ringgit pulling the market both ways. Offers were generally between $5 a tonne up and $5 down after Malaysian palm oil futures closed between 10 ringgit and 30 ringgit a tonne down on its first trading day since the Lunar New Year holidays, with bearish sentiment over weak exports offsetting declining production.
"The ringgit supported European cash prices as material gets more expensive in foreign currencies, but at the same time it weighs on Malaysian palm oil futures because it could reduce export demand," one broker said. CBOT soyaoil futures were between 0.18 cents and 0.31 cents higher per lb at 1730 GMT on technical buying and bargain hunting. Stronger energy markets also supported soyaoil futures, though beneficial rains in Argentina and the approach of a record South American soyabean harvest limited gains.
Liquid oils - EU rapeoil, soyaoil and sunoil - were quoted between unchanged and 10 euros a tonne lower, tracking weakness in rapeseed futures, which remain under pressure from a brighter global oilseed supply outlook. Lauric oils were offered between $5 and $15 a tonne lower, tracking Malaysian palm oil futures and because of a recovery of the dollar, which underpins prices in that currency. The premium for coconut oil over palmkernel oil was around $250 a tonne.
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