Palm oil on the European vegetable oils market continued firmer on Tuesday on a stronger ringgit and because Malaysian palm oil futures rose on an expected decline in production. Asking prices for palm oil were mostly between unchanged and $10 a tonne higher after Malaysian palm oil futures closed between 25 ringgit a tonne up and 2 ringgit down, off the day's highs.
"Although production may decline further, as is usual this time of year, the robust ringgit could continue to weaken already slow export demand," one broker said. A stronger ringgit makes palm oil more expensive for foreign buyers.
CBOT soyaoil futures were between 0.21 and 0.38 cents per lb higher at 1830 GMT on technical buying and supported by a rally in energy markets. EU rapeoil was quoted between 2 euros and 3 euros a tonne up, tracking firmer Chicago soyaoil futures and underpinned by strong energy markets, which could improve demand from biodiesel producers.
Coconut oil was offered $20 to $30 a tonne lower as sellers sought buyers without success. Palmkernel oil was offered between unchanged and $5 a tonne lower as the strong ringgit limited losses.
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