Palm oil on the European vegetable oils market was mostly firmer on Wednesday on a stronger ringgit, which underpins prices quoted in other currencies. “A strong ringgit supported prices on the European cash market, while the same rise caused Malaysian palm oil futures to drop on worries over export demand at the same time,” one broker said.
Palm oil was offered between $5 a tonne down and $5 up from Tuesday after Malaysian palm oil futures closed between 52 and 55 ringgit per tonne lower on a strengthening ringgit and after its rally last month shifted demand to Indonesia. At 1630 GMT CBOT soyaoil futures were between 0.06 and 0.16 cents per lb up on technical selling ahead of Friday’s USDA crop and supply/demand reports with traders buying soyameal futures and selling soyaoil contracts.
Liquid oils – rapeoil, sunoil, soyaoil – were mostly offered between three and five euros per tonne up from Tuesday on positioning ahead of Friday’s USDA data and because of mild gains in rapeseed futures. Improved demand also underpinned rapeoil. Lauric oils were between flat and $10 a tonne down, mostly following the trend in Malaysian palm oil futures. El Nino and a strong ringgit limited losses.