Soyaoil prices subdued demand on Europe's vegoils markets

Expectations for lower Chicago soyaoil prices subdued demand in Europe's vegetable oil markets on Friday while the Lunar New Year holiday in Asia kept many palm oil sellers out of the market, traders said. The main trade reported in Europe focused on rapeseed oil.
"Chicago soyabean and soyaoil futures fell in early Friday trade which took the steam out of European demand as buyers are hoping for further price drops," one trader said. "Buyers are expecting more price falls as the huge soyabean harvest in Brazil gathers speed." "The palm market was basically dead today because of the Asian holidays, with products often unquoted, but is expected to become more active on Monday as more Asian sellers return to work."
Chicago soyabean and soyaoil prices fell on Friday after the USDA forecast larger than expected US soyabean stocks. In Europe, soyaoil for May/July delivery was unchanged at 665 euros a tonne fob ex mill. Rapeseed oil for May/July delivery fell by 3 euros a tonne to 660 euros a tonne fob ex mill. Rapeseed traded in a series of positions between March and July although traders said volumes involved were relatively small (see below). No comparative rapeoil trades were reported on Thursday.
Sunflower oil was little changed, with April/June delivery flat at $810 a tonne ex tank. Crude palm oil was firmer because of thin sales offers, with April/June up $2.5 at $695.00 a tonne cif Rotterdam. "Harvesting of a record soyabean crop is now starting in Brazil and Brazilian soyabean exports are expected to accelerate in coming weeks after an initial period of reserved farmer selling," another trader said.
"There is talk the Argentine soyabean crop will also be larger than expected. Argentine soyaoil-based biodiesel exports are also weak and so more Argentine soyaoil is also likely to be offered on the world market." "These factors could weaken prices so some buyers are holding back." Weakening sunflower oil exports from Russia were also likely to transfer demand to soyaoil in coming weeks, traders said.