Palm oil on the European vegetable oils market rose again on Friday, supported by strong gains in Malaysian palm oil futures which had been boosted by a weaker ringgit and gains in rival soyaoil. A lower ringgit could increase export demand as it makes palm oil cheaper for foreign buyers. "It looks like bearish sentiment has lost momentum and the market overall was gaining," one broker said.
Asking prices for palm oil were between $2.50 and $17.50 a tonne higher after Malaysian palm oil futures closed between 19 and 47 euros per tonne higher. At 1630 GMT, CBOT soyaoil futures were between 0.13 and 0.41 cents per lb higher on a stronger than expected National Oilseed Processors Association monthly crush report, which was seen as a sign of good demand. Firmer energy markets also added to the strength in soyaoil. EU rapeoil was offered between seven and 12 euros per tonne higher, tracking stronger CBOT soyaoil futures and because of some underlying demand. Firmer rapeseed futures, up on technicals, also supported rapeoil. Lauric oils followed the firmer trend in palm oil and were also supported by a weaker dollar, which underpins products priced in the US currency. Asking prices were between unchanged and $30 a tonne higher than Thursday.