OREANDA-NEWS. February 05, 2015. Palm oil prices on the European market jumped in early trade on Wednesday after a sharp rise on the Malaysia futures markets but a plunge on US markets and in crude oil prices made them pare some of their gains in later trade, traders said.

Malaysian palm oil futures climbed to their highest in a week on Wednesday, tracking cues from crude markets and as investors pinned hopes that Indonesia's plan to raise biodiesel subsidies will boost its consumption.

But in Chicago soybean prices dropped, as crude oil prices turned down again and pressured by expectations of large South American soy harvests and rising global stocks.

Crude palm oil was offered \\$10 to \\$30 a tonne up from Tuesday early but pared their gains in afternoon trade.

They were offered stable to \\$10 higher by 1700 GMT. Coconut oil ended the day in negative territory, offered between \\$10 lower and \\$5 higher while palmkernel was between \\$5 and \\$10 higher by 1700 GMT, compared to a rise of \\$10 to \\$20 in early trade.

Liquid oils - EU rapeoil, soyoil and sunoil - also pared their gains after the fall in Chicago and on European rapeseed futures.

US crude oil which had bounced over the past sessions were down 6.5 percent, below \\$50 a barrel, after data from the Energy Information Administration showed US crude stocks rose for the fourth consecutive week, hitting a record high.

Indonesia's government on Tuesday proposed a threefold increase in its biodiesel subsidies to 5,000 rupiah (40 US cents) per litre from 1,500 rupiah, aimed at protecting the top producer's fledgling biofuel industry against lower crude prices.