Tuesday, 21 July 2015 22:24
ROTTERDAM: Palm oil on the European vegetable oils market firmed on Tuesday in sympathy with gains in Malaysian palm oil futures on concerns over falling production in July.
“Holidays at the end of Ramadan could hamper production, which could eventually lead to a lower stocks number for July if exports exceed that number.
Otherwise the market had little to follow, apart from technical buying in both Malaysia and Chicago,” one broker said.
Palm oil was offered between unchanged and $ 10 a tonne up from Monday after Malaysian palm oil futures closed between seven and 30 ringgit higher on technical buying on concerns over July Malaysian palm oil output figures.
At 1730 GMT CBOT soyoil futures were between 0.50 and 0.61 cents per lb up due to technical buying following recent losses. The USDA left crop conditions for US soybeans unchanged from last week at 62 percent rated good to excellent.
Liquid oils – EU soyoil, rapeoil and sunoil – were mostly offered between 2 and 6 euros a tonne higher. Strong CBOT soymeal futures and concerns over a lower than predicted European rapeseed crop supported prices.
But buying interest was light. Coconut oil was offered as much as $ 20 a tonne up on improved nearby demand, while palmkernel oil was offered hardly changed from Monday. Coconut oil made about $ 250 premium over palmkernel oil.