Palm oil on the European vegetable oils market rallied on Thursday on the back of output fears, a strong ringgit and a weak dollar, which were all supportive. "The dollar, the ringgit, production fears and strong energy markets all came together at one moment in time and it triggered some covering, which also underpinned prices overall," one broker said.
Palm oil was offered between $12.50 and $55 a tonne up from Wednesday. Malaysian palm oil futures were between 25 and 43 ringgit per tonne higher, bolstered by concerns about weak output caused by El Nino-related dryness. At 1730 GMT, CBOT soyaoil futures were between 0.55 and 0.72 cents per lb higher, underpinned by a renewed rally in energy markets, stronger soyabeans and a weaker dollar which also helped soyaoil futures. EU rapeoil was offered between one euro per tonne down and two euros up from Wednesday, supported by higher CBOT soyaoil futures and firmer energy prices. Gains were limited by a weak dollar, which weighs on euro-priced products and steady rapeseed futures.
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