European vegoils: palm oil firmer on bargain buying

06 Mar, 2016

Palm oil on the European vegetable oils market was firmer on Thursday, tracking Malaysian palm oil futures, which ended well off their lows on short-covering and bargain buying. "The recent weakness in palm oil futures was bound to turn around at some point. A weak dollar underpinned palm oil prices on the European cash market also," one broker said.
Palm oil was offered between $5 and $10 a tonne up from Wednesday, buoyed by the weaker dollar, which lends support to products priced in that currency. Malaysian palm oil futures closed between five and 11 ringgit per tonne higher on bargain buying and short covering, with players eyeing next week's Price Outlook conference in Kuala Lumpur.
At 1730 GMT CBOT soyaoil futures were between 0.01 and 0.19 cents per lb higher on a technical bounce, although the outlook for ample global oilseeds supplies limited gains.
EU rapeoil gained 3-4 euros per tonne on the back of rises in Chicago soyameal and stronger rapeseed futures, which took their cue from CBOT soyabeans and gained on technical buying following recent losses. Coconut oil was offered $30 to $40 a tonne up from Wednesday as demand improved on concerns over copra supplies, while the sell side remained thin.

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