Rapeseed oil prices were lower in Europe on Tuesday but the move looked likely to prove shortlived following a bullish report issued by the US Department of Agriculture after business had wound down for the day. EU rapeseed oil asking prices were cut by 12.00 euros a tonne with the market suffering a setback after a strong recent advance fuelled partly by the prospect of smaller rapeseed crops in Canada, the European Union and Ukraine.
Sellers cut asking prices for August/October delivery rapeseed to 722 euros a tonne, down 12.00 euros from Monday but still 10 euros above levels sought a week ago. Palm oil prices also weakened prior to the USDA report with RBD palm olein offers cut by $5.00 to $10.00 per tonne. The market has been weighed by high stocks.
"Even with the possible increase in biodiesel demand in Indonesia and Malaysia this year, we think that the build-up in palm oil stocks in recent years will mean the global market remains well supplied," Capital Economics analyst Hamish Smith said in a market note on Tuesday. Coconut oil offers were cut by $10 to $15 a tonne. CBOT soyaoil futures had been holding at little changed levels but were then boosted by a lower-than-expected estimate for US soyabean stocks in a government report issued at 1600 GMT. August soyaoil on the CBOT was up 1.7 percent at 33.66 cents a lb at 1630 GMT.