Palm oil on the European vegetable oils market rose on Friday on hopes for improved demand during an export tax exemption in September and October. "Kuala Lumpur mostly ignored Thursday's bearish USDA supply/demand reports with investors buying the market palm market up, believing that the export tax exemption for the coming months will boost demand. They think they have seen proof in soaring Malaysian palm oil exports during the first 10 days of September," one broker said.
Palm oil was offered between $2.50 and $10 a tonne up from Thursday after Malaysian palm oil futures closed between eight and 35 ringgit per tonne higher, thanks to firmer soyaoil markets overnight and a surge in crude palm oil export demand. At 1730 GMT CBOT soyaoil futures were up by between 0.51 and 0.78 cents per lb on technical buying sparked by concerns about forecasts for frost in parts of the US Midwest and Canada, which could damage soyabean and canola crops.
EU soyaoil bounced back from recent losses and was offered up by between 10 and 12 euros per tonne from Thursday. EU rapeoil was quoted between unchanged and up five euros in sympathy with soyaoil and steadier rapeseed futures, which firmed on the North American frost fears. Gains were limited by Thursday's bearish USDA crop and supply/demand reports and the outlook for ample global oilseed supplies.
Palmkernel oil was offered up by as much as $27.50 per tonne from Thursday on improved demand and in sympathy with gains in palm oil. Coconut oil was hardly discussed with asking prices between unchanged and down $5 from Thursday. Coconut currently makes a premium of about $300 over palmkernel oil.