Palm oil on the European vegetable oils market rose on Thursday, tracking Malaysian palm oil futures, which gained on talk of a smaller than expected rise in production in July. Palm oil production in Malaysia, the second largest producer after Indonesia, is seen rising in the second half of the year, in line with seasonal trends, and is expected to peak in October.
Asking prices for palm oil were between unchanged and $10 up from Wednesday after Malaysian palm oil futures closed between 38 and 48 ringgit per tonne higher on concerns over July output. At 1630 GMT CBOT soyaoil futures were between 0.06 cents per lb lower and 0.07 cents higher, supported by short covering in Chicago soyabeans and due to stronger energy markets. Technical selling weighed. EU rapeoil was offered between five and seven euros per tonne up from Wednesday, tracking initial strength in CBOT soyaoil futures and stronger European rapeseed futures, which were supported by higher energy markets as it could boost demand from biodiesel producers.
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