MARKET DEVELOPMENT
European Vegoils-Palm Oil Mixed on Contrasting Leads
European Vegoils-Palm Oil Mixed on Contrasting Leads
22/01/2016 (Reuters) - Palm oil on the European vegetable oils market was offered mixed on Thursday with support from a rally in energy markets and a stronger ringgit while worries over exports and lower Malaysian palm oil futures weighed.
"The jump in mineral oil supported most vegetable oils, as it could trigger demand from biodiesel producers. Buyers were still cautious as the fundamentals were still mostly bearish," one broker said.
Palm oil was mostly offered between $2.50 a tonne down and $5 up from Wednesday after Malaysian palm oil futures closed between nine and 43 ringgit a tonne down because of a stronger ringgit, which could hamper exports as palm oil is more expensive for buyers holding foreign currencies.
At 1730 GMT CBOT soyoil futures were between 0.12 and 0.26 cents per lb up on technical buying following recent losses and supported by a rally in energy markets.
Liquid oils -rapeoil, soyoil and sunoil- were mostly offered between unchanged and five euros per tonne up, tracking CBOT soyoil and because of firmer rapeseed futures.
A stronger dollar, which underpins euro-priced products, and higher energy prices were also supportive.
Lauric oils slipped between $5 and $10 a tonne, following the trend in palm oil futures and due to the stronger dollar, which weighs on products quoted in that currency. Coconut oil was at a premium of around $250 a tonne over palmkernel oil.
"The jump in mineral oil supported most vegetable oils, as it could trigger demand from biodiesel producers. Buyers were still cautious as the fundamentals were still mostly bearish," one broker said.
Palm oil was mostly offered between $2.50 a tonne down and $5 up from Wednesday after Malaysian palm oil futures closed between nine and 43 ringgit a tonne down because of a stronger ringgit, which could hamper exports as palm oil is more expensive for buyers holding foreign currencies.
At 1730 GMT CBOT soyoil futures were between 0.12 and 0.26 cents per lb up on technical buying following recent losses and supported by a rally in energy markets.
Liquid oils -rapeoil, soyoil and sunoil- were mostly offered between unchanged and five euros per tonne up, tracking CBOT soyoil and because of firmer rapeseed futures.
A stronger dollar, which underpins euro-priced products, and higher energy prices were also supportive.
Lauric oils slipped between $5 and $10 a tonne, following the trend in palm oil futures and due to the stronger dollar, which weighs on products quoted in that currency. Coconut oil was at a premium of around $250 a tonne over palmkernel oil.