European Palm oil drops ahead of stocks data

ROTTERDAM: Palm oil prices eased on Monday on the European vegetable oil market on expectations for higher palm oil stocks, market sources said.

"Markets were mostly dull due to lack of leads and players waiting for key data due at the end of the week. The absence of Chinese players due to a public holiday dampened demand," one broker said.

Thursday USDA will release supply/demand data and a day later the MPOB will issue its data.

Palm oil was offered $2.50 to $12.50 a tonne down from Friday after Malaysian palm oil futures closed between 26 and 55 ringgit down because of rising stocks.

July delivery RBD palm olein traded at $1,215 and $1,212.50 a tonne fob Malaysia, down $17.50 from Friday, Aug/Sept traded $10 down at $1,190, Oct/Dec fetched $1,170 and Jan/March traded $17.50 down at $1,175 and $1,167.50 fob.

Crude palm oil changed hands at $1,155 a tonne cif Rotterdam for Oct/Dec and Jan/March traded at $1,150 and $1,152.50 cif.

At 1630 GMT CBOT soyoil futures were 0.43 to 0.63 cents per lb down on outlooks for improving crop weather and weakness in mineral oil.

Liquid oils were offered 10 to 20 euros per tonne down from Friday following the trend in soyoil futures, weaker rapeseed futures on the back of rain in Europe and a weak dollar that weighed on euro-priced products.

Bids were scarce and no deals were reported.

Lauric oils were offered between $10 a tonne up and $90 down from Friday with buyers showing little interest and no deals were reported.

Copyright Reuters, 2011