Palm oil in Europe continued to firm on Tuesday, tracking Malaysian palm oil futures higher on improving exports and concerns over output due to the El Nino weather pattern while a strong ringgit also supported cash prices. "Output worries combined with better exports in March could lead to a further cut in the still huge Malaysian palm oil stocks, which supports the market," one broker said.
Palm oil was mostly offered between $7.50 and $20 a tonne up after Malaysian palm oil futures closed between 18 and 27 ringgit per tonne higher, but off the day's highs. At 1730 GMT, CBOT soyaoil futures were 0.26 to 0.50 cents per lb higher on technical buying and palm oil strength. EU rapeoil was offered between seven and 14 euros per tonne higher than Monday, tracking stronger Chicago soyaoil and rapeseed futures, the latter being helped by slow farmer selling leading to poorer crush margins.
Lauric oils continued to rise sharply with sellers offering coconut oil between $30 and $40 a tonne up from Monday. Palmkernel oil was mostly quoted between $10 and $30 a tonne higher. Gains were mostly because of worries about tight supply following El Nino, while a strong ringgit also underpinned palmkernel oil.
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