Asking prices for palm oil on the European vegetable oils market rose on Thursday as energy markets soared after Opec agreed on Wednesday to restrict output. Palm oil was offered between $5 and $12.50 a tonne higher after Malaysian palm oil futures closed between six and 33 ringgit per tonne up on support from stronger energy prices, which also underpinned rival soyaoil.
"The Opec deal still pulled most of the strings in the vegetable oils market as higher mineral oil prices could spur demand from biodiesel producers for vegetable oils like palm and rapeoil," one broker said. At 1730 GMT CBOT soyaoil futures were between 0.24 and 0.73 cents per lb up, supported by follow-through buying in energy markets.
EU rapeoil was mostly offered between flat and four euros per tonne up from Wednesday, tracking gains in CBOT soyaoil futures and supported by strength in rapeseed futures. A weaker dollar, which weighs on euro-priced products, capped gains. Coconut oil tracked rival oils and was supported by dollar weakness, which underpins products priced in that currency. Asking prices were around $20 a tonne up from Wednesday.