Palm oil on the European vegetable oils market eased on Thursday, tracking weaker CBOT soyaoil and because of some profit taking in Malaysian palm oil futures. Asking prices for palm oil were offered between unchanged and $10 a tonne down from Wednesday after Malaysian palm oil futures closed between 15 and 27 ringgit per tonne lower.
"As the palm oil market was coming down a bit, demand on the cash market was picking up a little. Lack of fresh leads made it a little more difficult making business decisions," one broker said. At 1630 GMT CBOT, soyaoil futures dropped between 0.49 and 0.72 cents per lb, tracking Chicago soyabeans lower on a six percent plunge in the value of Brazil's currency, the real, which should encourage Brazilian farmers to increase cash sales of their record-large soya harvest.
EU rapeoil dipped between eight and 11 euros per tonne, tracking CBOT soyaoil and sharply lower rapeseed futures, which took their cue from falling CBOT soyabean futures. Coconut oil continued its see-saw trading with asking prices easing to find buyers again. Asking prices were $25 to $50 down from Wednesday. Palmkernel oil was offered between unchanged and $20 higher because of underlying demand. The premium of coconut oil was $400 over palmkernel oil on the June/July position.
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