ROTTERDAM: Palm oil on the European vegetable oils market remained firm on Wednesday on the back of a stronger ringgit and because of short covering in Malaysian palm oil futures, triggered by sharp gains in energy markets.
A strong ringgit makes palm oil more expensive in foreign currencies, usually supporting European cash prices, quoted in dollars. At the same time the ringgit weighs on futures because of worries about declining export demand.
Asking prices for palm oil were between unchanged and $10 a tonne higher after Malaysian palm oil futures closed between 21 and 37 ringgit up.
At 1630 GMT CBOT soyoil futures were between 0.06 and 0.12 cents per lb down on technical selling as Chicago traders bought CBOT soymeal on concerns that dry weather in Argentina could hurt the soybean crop and sold soyoil futures.
EU rapeoil was quoted between unchanged and 10 euros per tonne higher, tracking a rally in energy markets, which could trigger demand from biodiesel producers. Firmer rapeseed futures, taking a cue from stronger CBOT soybeans on traditional pre-Thanksgiving Day buying, also underpinned prices.
CBOT markets will be shut on Thursday for Thanksgiving Day.
“Thursday is likely to be slow because of lack of direction from Chicago and because many players will be absent, visiting a large trade dinner in Hamburg,” one broker said.
Lauric oils were mostly offered between unchanged and $20 per tonne higher, supported by the strength in palm oil and due to a strong ringgit and weaker dollar, which both underpin products quoted in dollars.
Source: Brecorder.com
