European vegoils ease on follow-through selling

ROTTERDAM: The European vegetable oil market eased slightly on Wednesday in follow-through selling on concerns that a renewed euro crisis could lead to lower demand and because of prospects for larger world oilseed stocks.

"The market saw a bit of a routine day with bearish sentiment still prevailing, but the losses were capped by some bargain hunting on the futures markets. Buyers in Europe still show little faith in the market," one broker said.

At 1700 GMT CBOT soyoil was between 0.17 cents per lb down and 0.42 cents up in a mild technical rebound following recent sharp losses on the back of prospects for a bumper South American soybean crop.

Liquid oils - soyoil, sunoil and rapeoil - were offered slightly easier on the back of Tuesday's dip in Chicago soyoil, but the market was supported a little on bargain hunting and steadier rapeseed futures.

May/July EU rapeoil traded five euros per tonne down from Tuesday 900 and 895 euros per tonne fob exmill and Aug/Oct changed hands at 878 and 880 euros, also down five euros.

Palm oil was offered between $2.50 and $7.50 a tonne down from Tuesday after Malaysian palm oil futures closed between three and 20 ringgit per tonne down on worries over the global economy, but the market was underpinned by hopes for a reduction in still huge palm oil stocks.

Trades in RBD palm olein include April/June at between $832.50 and $815 a tonne fob Malaysia, down $7.50 from Tuesday, July/Sept at between $832.50 and $815, down $10 and Jan/March traded $15 down at $832.50

Crude palm oil traded unchanged at $850 a tonne cif Rotterdam for April/June and May/June fetched $852.50.

Lauric oils remained uneventful with sellers offering material between $5 a tonne down and $10 up from Tuesday, mostly in sympathy with palm oil. Buyers remained sidelined, showing little confidence in the market, and no deals were reported.