Thursday, 14 February 2013 01:34
ROTTERDAM: Palm oil on the European vegetable oils market dropped on Wednesday after a smaller-than-expected drop in Malaysian palm oil stocks and a price fall in Chicago on expectations for a good South American crop.
"Continued long liquidation in CBOT soycomplex futures on prospects for a bumper South American crop helped Malaysian palm oil futures drop after the market was closed for Chinese New Year on Monday and Tuesday," one broker said.
Palm oil was offered between $5 and $20 a tonne down from Tuesday, when prices were mostly indicative due to lack of participation.
Crude palm oil traded at $830 a tonne cif Rotterdam for February shipment, and March changed hands at $850.
Malaysian palm oil futures closed between 39 and 57 ringgit a tonne down from Friday as data showed stocks did not drop as much as anticipated and on larger global oilseed stocks.
April/June RBD palm olein changed hands between $860 and $852.50 a tonne fob Malaysia, and July/Sept fetched $870 and $867.50 fob.
At 1730 GMT CBOT soyoil futures were between 0.13 and 0.57 cents per lb up in a rebound from recent losses as players sold soymeal and bought soyoil contracts.
Liquid oils - soyoil, rapeoil and sunoil - were offered between 5 and 12 euros per tonne down from Tuesday but were off the day's lows on a technical correction in rapeseed futures and the turnaround in CBOT soyoil.
May/July EU rapeoil changed hands between 900 and 891 euros per tonne exmill, down 19 euros from Tuesday, and new crop Aug/Oct traded 15 euros lower between 885 and 880 euros.
EU sunoil for April/June changed hands at $1,245 and $1,247.50 a tonne extank, and July/Sept traded down $7.50 at $1,247.50.
Lauric oils remained mostly undiscussed as the Asian market was still starting up after the Chinese New Year break. Asking prices were $5 to $15 a tonne down from Tuesday in line with palm oil.
Copyright Reuters, 2013