HAMBURG - Prices rose sharply in Europe's vegetable oil market on Monday, pushed up by a surge in Malaysian palm oil and in U.S. soyoil futures in Chicago, traders said.
Main European trade was reported in palm olein, rapeseed oil and coconut oil. (see below).
Benchmark Malaysian palm oil futures rose 3.6 percent on Monday to their highest in two and a half years on indications of sluggish palm production and following sharp gains in soyoil on China's Dalian Commodity Exchange and the Chicago Board of Trade.
Firm palm oil in turn helped Chicago soybeans rise to a two-month high on Monday, with most-active Chicago December soyoil up around 2 percent at the end of the European session.
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"The price strength is remarkable and has caught some consumers by surprise," one European trader said. "Many had been expecting falling prices as the U.S. is currently harvesting a record-large soybean crop which will enable expanded soyoil production."
"It looks like firm palm oil and strong export demand for U.S. soybeans is removing the impact of the large U.S. harvest. There is also worry about poor planting weather for South American soybeans."
In Europe, crude palm oil rose between $20 to $32.50 for most delivery positions with November delivery offered for sale up $30 a tonne on Friday at $760.00 a tonne cif Rotterdam.
Refined, bleached and deodorised (RBD) palm olein was offered for sale for November delivery up $22.50 a tonne at $717.50 a tonne FOB Malaysia.
Rapeseed oil rose by between 5 to 11 euros tonne ($5.4 to $12) fob ex mill for most delivery positions. Sunflower oil rose by about $10 for nearby delivery.
"Rapeseed oil continues to be supported by the sharp reduction in the EU's harvest this summer coupled with demand from the biodiesel industry which is traditionally higher at this time of the year," another trader added.
