Palmkernel oil jumps on European vegoils market

24 Aug, 2014

Palmkernel oil on the European vegetable oils market rose sharply on Thursday because of technical support after trading as low as $840 a tonne cif Rotterdam. "The gap between palmkernel oil and coconut oil widened to almost $250 after which asking prices jumped some $50 to cut the gap to $200, which is still a significant discount. Otherwise the market remained fairly quiet with players looking for fresh clues," one broker said.
Palmkernel oil was offered $55 a tonne higher than Wednesday while coconut oil gained $25. Palm oil was offered between $5 and $10 a tonne down from Wednesday after Malaysian palm oil futures closed between one ringgit a tonne up and 11 ringgit down on talk of importers India and China cancelling contracts.
At 1730 GMT CBOT soyoil futures were between 0.09 and 0.41 cents per lb up as dwindling supplies of old-crop US soybeans kept cash values firm. Stronger mineral oil also underpinned soyoil. Liquid oils - EU rapeoil, soyoil and sunoil - were mostly offered between unchanged and 12 euros per tonne up from Wednesday, tracking Chicago soyoil and underpinned by firmer rapeseed futures. Higher mineral oil values and a firm dollar, which supports euro-priced products, also aided to the gains.

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