Reuters (19/10/2017) - HAMBURG, Oct 19 (Reuters) - A firm opening by Chicago soyoil prices on Thursday provided late support to European vegetable oil markets, traders said.

The main European trading reported on Thursday was in rapeseed oil, crude palm oil and palm olein (see below). No significant comparative trade was reported on Wednesday.

“The day ended with a firm tone despite a lower close by Malaysian palm futures,” one trader said. “There was demand for rapeseed oil, although volumes involved were relatively small, as the impact of the new imports of Argentine biodiesel are still unclear.”

Malaysian palm oil futures continued to fall on Thursday, tracking weakness on China’s Dalian Commodity Exchange and pushed down by estimates of rising palm oil production.

But nearby December Chicago soyoil jumped 1.2 percent in early Thursday trade partly because of stronger-than-expected U.S. soyoil and soymeal exports.

In Europe, prices for crude palm oil rose by about $2.5 for nearby delivery and other positions up to March 2018 were little changed despite the fall in Malaysia.

Prices for Dutch and German-produced rapeseed oil ended the day up 1 euro for nearby delivery.

“The rapeseed oil market is still assessing the impact of the EU’s decision to allow imports of biodiesel from Argentina,” a trader said. “Forecasts are that about 1.5 million tonnes of European-produced biodiesel will be replaced by imports of Argentine biodiesel.”

Argentina regained access to the European Union’s biodiesel market in late September after the South American country’s successful World Trade Organization challenge to Europe’s anti-dumping duties on the green fuel.

The move is set to cause production cuts among European producers of biodiesel which largely use rapeseed oil and soyoil as raw materials.

“I think there are expectations that EU output of biodiesel using soyoil feed stock is likely to be reduced and that EU output of rapeseed oil-based biodiesel is likely to remain pretty stable in the near future,” the trader added.

EUROPEAN VEG OILS TRADES CIF Rotterdam unless otherwise stated - - - - - - - - - - - - - - - - - - - - - - Oct 19, 2017 – 1600 GMT

CRUDE PALM OIL Sumatra/Malaysia slrs option dlrs a tonne Nov 712.5 Dec 710/712.5 Jan/Feb 710

PALM OLEIN RBD dlrs tonne fob Malaysia Apr/Jun 673/676

RAPEOIL Dutch/EU euro tonne fob exmill Nov 749, May/Jul 726 (Reporting by Michael Hogan; Editing by Mark Potter)