Palm oil down on global growth worries

AMSTERDAM: Prices of vegetable oils in the European market fell on Monday on concerns about global economic growth following the United States credit rating downgrade, traders said.

Improved weather conditions in the US also pressured the prices, traders said.

"The uncertainty will continue and the market will remain defensive," one trader said. "But soon I expect it to show resistance."

The fallout from Standard & Poor's downgrade of the United States pushed world stocks to their lowest level in nearly a year on Monday and sparked fresh selling of commodities and shares, driving investors into the safety of gold and bonds.

Palm oil was quoted between $15 and $22 a tonne lower after Malaysian palm oil futures hit a nine-month low.

Liquid oils were offered between 15 and 35 euros per tonne down from Friday in line with Chicago Board of Trade, where soyoil futures were between $0.75 and $1.14 down per lb at 1645 GMT.

October to December deliveries RBD palm olein changed hands between $1,077.50 and $1,085 a tonne fob Malaysia, while January to March deliveries traded at between $1,072.50 and $1,077.50.

Lauric oils were mixed. Coconut oil was offered between $10 to $30 a tonne up from Friday while palm kernel oil prices were unchanged from Friday.

Copyright Reuters, 2011