European vegetable oils continue to weaker

09 Sep, 2012

The European vegetable oils market continued to ease on Friday on a strong supply outlook for palm oil and pressure from the US soyabean harvest. "It is about the same story as the day before, but dollar priced products moved a little off the day's lows due to a weaker dollar. Buyers were still cautious at the current high price levels," one broker said.
At 1700 GMT CBOT soyaoil futures were between 0.02 and 0.56 cents per lb down on continued technical selling as investors took profits in the belief that late rains might still be beneficial to the soyabean crop. Liquid oils - soyaoil, rapeoil and sunoil - were offered between 10 and 12 euros a tonne down from Thursday following weakness in Chicago, easier rapeseed futures and a weak dollar, which weighs on euro-priced products.
November-January EU rapeoil traded eight euros down from Thursday between 1,016 and 1,011 euros per tonne fob exmill, February-April changed hands between 1,010 and 1,005 euros, down 10 euros, and May/July fetched 1,002 euros. Palm oil was offered between unchanged and $10 a tonne down from Thursday after Malaysian palm oil futures closed between 21 and 41 ringgit per tonne down on the view that Malaysian palm oil stocks in August will top two million tonnes.
October-December RBD palm olein traded unchanged from Thursday at $972.50 a tonne fob Malaysia and January-March changed hands from $996 down to $965, down $5. Crude palm oil traded at $987.50 a tonne cif Rotterdam for October shipment, January-March traded at $1,000 and February shipment fetched $1,005. Lauric oils were quoted between unchanged and $10 a tonne down following the trend in rival palm oil, but losses were limited by the dip in the dollar, which was supportive for dollar-priced products. No deals were reported.

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