Palm oil on the European vegetable oils market eased further on Thursday due to a stronger dollar and technical selling in competing vegetable oils. "The markets fell on the higher dollar and bearish sentiment about Friday's May 1-20 Malaysian palm oil exports, combined with talk of improving production, also weighed," one broker said.
Palm oil was mostly offered between $10 and $20 a tonne down from Wednesday after Malaysian palm oil futures closed between 30 and 47 ringgit per tonne lower on technical selling following weakness in other vegetable oils. At 1630 GMT CBOT soyaoil futures were between 0.86 and 1.10 cents per lb down, tracking technical selling in Chicago soyabeans and disappointment over the US Environmental Protection Agency proposing a modest increase in the amount of biofuels that fuel companies must mix into diesel and gasoline next year, which was lower than expected.
EU rapeoil was offered between five and 13 euros per tonne lower, tracking the sharp drop in CBOT soyaoil and because of a dip in rapeseed futures, which followed the easier trend in CBOT soyabeans. Coconut oil was mostly offered between flat and $10 a tonne down, while palmkernel oil dropped as much as $55 a tonne, mostly tracking rival palm and soyaoil and also due to a strong dollar, which weighs on products priced in that currency.