EU rapeseed oil prices were sharply lower on Wednesday, with demand from the EU biodiesel sector curbed by imports of the biofuel from Argentina. Dealers said the sharp drop in prices had triggered a pick-up in buying interest, although the market may have scope to fall further in the near future.
The European Union decided in September to reduce import duties on low-price Argentine biodiesel after the Latin American country successfully challenged EU anti-dumping measures at the World Trade Organization.
Rapeseed oil is widely used in the production of biodiesel in the European Union. EU rapeseed oil for delivery in February was offered at 683 euros a tonne. Asking prices for next month delivery were above 800 euros in mid-November.
Imports of cheap Argentine biodiesel are starting to cause problems for European rapeseed crushing mills and may force them to cut production, a leading German industry executive said last month. Crude palm oil prices were lower, with the market also actively traded. Malaysian palm oil futures slumped to a three-week low on Wednesday, while CBOT soyabean oil also weakened with the most active contract down one percent at 32.47 cents a lb at 1728 GMT.
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