European vegoils firmer on drier Argentine weather

ROTTERDAM: Asking prices on the European vegetable oil market rose on Tuesday following a jump in Chicago soy complex futures on concerns that less rain than expected in Argentina could reduce soybean yields.

"We stay subject to a weather market until harvest in Argentina commences and until that time European players will trade the market with care as they do not want to be caught out if in two days or so the market turns around on rain," one broker said.

At 1700 GMT CBOT soyoil was between 60 and 84 cents per lb up on Argentine weather concerns after the market was closed for a public holiday on Monday.

Liquid oils - soyoil, sunoil and rapeoil - were offered between two and 10 euros per tonne up from Monday following CBOT soyoil and a jump in rapeseed futures, which took a cue from Chicago soybeans on worries that global oilseed stocks could dwindle on the dry weather in Argentina. A dip in the dollar, which weighs on euro-priced products, limited gains.

May/July EU rapeoil changed hands at 920 and 923 euros per tonne fob exmill and new crop Aug/Oct traded at 903 euros fob.

EU sunoil traded at $1,270 a tonne extank for July/September.

Palm oil was offered between unchanged and $10 a tonne up from Monday after Malaysian palm oil futures closed between 22 and 33 ringgit per tonne higher in sympathy with Chicago on concerns over crop weather in Argentina and hopes that a reduced soybean crop could spark extra demand for the much cheaper palm oil.

April/June RBD palm olein traded $9.50 up between $859 and $862.50 a tonne fob Malaysia, July/Sept changed hands at $867.50 and $870, up $5 from Monday and Oct/Dec fetched $872.50 and $875, also up $5.

Early in the day crude palm oil changed hands at $865 a tonne cif Rotterdam for March shipment.

Lauric oils remained hardly discussed despite slightly easier seller prices at $5 to $10 under Monday's levels, but that was not enough to attract buying interest and no deals were reported.