Palm oil on the European vegetable oils market eased on Tuesday along with futures markets on technical selling after the recent gains made on concerns over production and availability in the coming months. Palm oil was offered between unchanged and $15 a tonne lower after Malaysian palm oil futures closed between 21 and 28 ringgit per tonne down, tracking a fall in prices of rival oils on China's Dalian Commodity Exchange and weakness on the CBOT because of profit-taking.
"After a strong spell during the last couple of days some profit-taking was bound to happen. The dip in prices, which was also seen in the European cash market caused some activity in rapeoil but otherwise most buyers preferred not to buy into a falling market," one broker said. At 1730 GMT CBOT soyaoil futures were between 0.04 and 0.28 cents per lb down on technical selling and pressured by sharply lower energy markets.
EU rapeoil was offered between four and 10 euros per tonne down, following the trend in Chicago soyaoil and due to a mild dip in the dollar, which weighs on euro-priced products. Slightly firmer rapeseed futures and demand for more distant positions limited losses somewhat.