Palm oil on the European vegetable oils market was offered lower on Monday, pressured by weak energy markets and a stronger dollar. Lower energy prices could cause a decline in demand for vegetable oils from biodiesel producers. Asking prices for palm oil were between unchanged and $10 a tonne lower, with the stronger dollar weighing on products quoted in that currency. Malaysian palm oil futures closed between five ringgit per tonne up and 10 ringgit down, with expectations of weaker production and some bargain buying limiting losses.
At 1630 GMT, CBOT soyaoil futures were between 0.18 and 0.36 cents per lb lower, following sharply weaker energy markets and tracking easier Chicago soyabeans on generally benign US weather and worries about trade relations between the United States and top global soya buyer China.
Old crop EU rapeoil was quoted 10 euros per tonne higher on tight supplies at the end of the crop season. New crop, starting from August/October, was offered between two and four euros higher on concerns that dry weather in several rapeseed growing areas could reduce yields. The strong dollar also supported rapeoil, which is quoted in euros.