Asking prices for palm oil on the European vegetable oils market eased on Friday amid ongoing concerns over slowing demand after major consumer India increased import taxes last week. Palm oil was mostly between $5 and $12.50 a tonne lower after Malaysian palm oil futures closed between 27 and 40 ringgit per tonne down.
"Production in March is expected to increase, while the India tax story will weigh on exports, so it is well possible that palm oil stocks increase in March, which is bearish to futures," one broker said. At 1730 GMT, CBOT soyaoil futures were between 0.09 and 0.24 cents per lb lower on the back of technical selling in Chicago soyabeans and because of forecasts for rain in drought-stricken Argentine soyabean growing areas.
EU rape oil was quoted between two and six euros per tonne down from Thursday, following the lower trend in CBOT soyaoil and pressured by concerns that an influx of Argentine biodiesel imported into the E.U. could limit demand for rape oil by biodiesel producers. Coconut oil was offered around $5 a tonne lower, but follow-through trades were between $30 and $50 higher than traded on Thursday. Palm kernel oil was quoted around $30 a tonne lower, tracking weaker palm oil and because of a lack of demand.
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