Palm oil on the European vegetable oils market firmed on Tuesday, tracking stronger Malaysian palm oil futures on the back of a weaker ringgit and strength in CBOT soyaoil futures because of lower than expected weekly crop ratings for US soyabeans.
Asking prices for palm oil were mostly between unchanged and $10 a tonne higher, also supported by a stronger dollar. Malaysian palm oil futures closed between 12 and 29 ringgit a tonne up. At 1630 GMT, CBOT soyaoil futures were between 0.19 and 0.25 cents per lb higher, tracking stronger Chicago soyabeans on the lower than expected weekly crop progress for US soyabeans.
Higher energy markets also underpinned soyaoil prices. Tight nearby supplies and worries about the rapeseed crop size in Europe due to hot and dry weather combined by technical buying pushed asking prices for EU rapeoil up by five to nine euros per tonne.