Palm oil on the European vegetable oils market was offered at slightly stronger levels on Tuesday following gains in Malaysian palm oil futures due to higher exports during May and in response to an increase in biodiesel mandates. Palm oil was mostly offered between unchanged and $2.50 a tonne higher. Malaysian palm oil futures had closed between nine and 23 ringgit tonne higher on the back of a weaker ringgit and a government announcement to raise biodiesel mandates, which stipulate the amount of bio content in diesel.
"Gains on the European cash market were limited by a weak ringgit, which makes palm oil cheaper for foreign buyers and at the same time supports futures on hopes for improved export demand," one broker said. By 1630 GMT CBOT soyaoil futures were between 0.06 and 0.24 cents per lb higher, tracking firmer energy markets and also because of technical buying.
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