Palm oil on the European vegetable oils market eased on Friday following a rise in Malaysia's palm oil stocks and a substantial reduction in its exports during the first 10 days of October. Business was thin overall as players awaited fresh USDA crop and supply data, which was issued too late in the European day to react to.
"Malaysian data was overall bearish, while USDA was neutral to mildly bullish for US soyabeans as the numbers were below trade expectations. Nevertheless it remains a huge crop, which could continue to weigh on prices," one broker said. Palm oil was offered between $2.50 and $17.50 a tonne down from Thursday after Malaysian futures closed between 7 and 14 ringgit per tonne lower, but off the intraday lows as players shifted focus to the USDA data.
At 1730 GMT CBOT soyaoil futures were between 0.29 and 0.51 cents per lb down on technical selling and in sympathy with second thoughts in CBOT soyabean futures, which dropped from small gains at the start of the session. Weak mineral oil also weighed on prices. Liquid oils, rapeoil, soyaoil and sunoil, were offered between 1 euro and 10 euros per tonne down from Thursday as players positioned ahead of the release of USDA data, which they expected to be bearish again. Easier rapeseed futures, on the back of the outlook for ample global oilseed supplies, also weighed on prices. Lauric oils were offered between $20 and $40 a tonne down from Thursday on the back of weaker palm oil and because of a strong dollar, which weighs on products quoted in that currency.