Plantations on Sumatra island and the Indonesian part of Borneo have expanded in recent years as demand for palm oil has skyrocketed, resulting in the destruction of vast tracks of jungle. - AFP/File
LONDON: Prices on the European vegetable oils market were higher on Wednesday, boosted by a pick-up in exports of Malaysian palm oil products and gains in Chicago soybean oil driven by concerns that scorching weather in the U.S. Midwest could damage crops.
EU rapeseed oil offers were raised by between 8.00 and 12.00 euros a tonne with August/October last traded at 703 euros. There were no reported trades for the position on Tuesday while on Monday it had last traded at 689 euros.
CBOT soyoil futures were 1.6 percent higher at 31.68 cents a lb at 1536 GMT.
Palm oil prices were also higher, boosted by gains in Malaysian futures.
Malaysian palm oil futures extended gains, touching a two-week high on Wednesday on improving demand amid expectations of further weakness in the ringgit.
Exports of Malaysian palm oil products for July 1-20 rose 14 percent from a month earlier, cargo surveyor Intertek Testing Services said on Wednesday, while Societe Generale de Surveillance reported 15.3 percent export growth.
RBD palm olein for October/December shipment last traded at $600 per tonne, up $10 from business on Tuesday.
Aug/Oct 701/702/703 Nov/Jan 700/701, Feb/Apr 705 CRUDE PALM OIL Sumatra/Malaysia slrs option dlrs tonne
Jan/Jun 640 PALM OLEIN RBD dlrs tonne fob Malaysia
Oct/Dec 590/600 Jan/Mar 602.50/605 Apr/Jun 610 Jul/Sep 607.50 - Reuters
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