Palm oil on the European vegetable oils market continued to rise on Thursday on concerns that dry weather in Asia could reduce output and because of gains in rival soyaoil. "Palm oil follows the trend in soyaoil and soyaoil tracks palm oil, both on worries over global supply. It at the moment like a dog chasing its tail," one broker said.
Palm oil was offered between $7.50 and $20 a tonne up from Wednesday, underpinned by a dip in the dollar after Malaysian palm oil futures closed between five and 34 ringgit per tonne up following a recovery in China and US soya markets, while unfavourable crop weather in Southeast Asia continued to underpin prices.
At 1730 GMT CBOT soyaoil futures were between 0.68 to 1.10 cents per lb up because of good US export shipments and tracking the trend in palm oil futures. EU rapeoil was offered between five and 12 euros per tonne up from Wednesday on the back of a rally in rapeseed futures because of technical buying on fears for tighter than expected global oilseed supplies. Sellers for EU sunflower oil were withdrawn at the end of the day after some trades were done. Lauric oils were offered $10 to $20 a tonne up from Wednesday following the trend in palm oil and supported by a weaker dollar, which underpins prices in that currency.
