European vegetable oils prices were mostly higher on Thursday in very thin trading conditions, with activity slow ahead of a major trade meeting in Rotterdam.Dealers said many market participants were attending an annual dinner in Rotterdam organised by the Netherlands Oils, Fats and Oilseeds Trade Association (NOFOTA). "A lot of people are traveling or recovering from some parties yesterday," one broker said.
Dealers said a weaker dollar helped underpin prices denominated in the US currency. RBD palm olein for July/September shipment traded at $602.50 a tonne, up $2.50 from last business on Wednesday, with Oct/December last at $592.50, also up $2.50.
Malaysia's move to scrap its crude palm oil export tax in May will likely prompt India and China, the biggest buyers of the edible oil, to delay purchases to next month to get cheaper cargoes, industry sources said.
Malaysia's reduction of the export tax back to zero comes just as its biggest rival Indonesia, the top producer of the tropical oil, moves closer to laying on additional levies to its own palm exports to fund biodiesel subsidies and ambitious mandates rolled out earlier this year.
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