European vegoils-Palm oil keeps falling on improving output

ROTTERDAM: Palm oil on the European vegetable oils market eased again on Monday on the back of an outlook for rising production.

Asking prices for palm oil were between $5 and $12.50 a tonne down from Friday after Malaysian palm oil futures closed between six and 26 ringgit per tonne lower as slowing demand and expectations of higher supplies weighed on the market.

Malaysian palm exports during the first 20 days of February were almost unchanged from the same period last month.

"With the absence of a direction from Chicago markets, bearish sentiment from Asian markets prevailed. Many players are cautious ahead of the annual Price Outlook Conference in Kuala Lumpur at the end of the month," one broker said.

EU rapeoil saw a mild recovery in asking prices on the back of a strong dollar, which underpins euro-priced products. Offerings were between two and five euros up, but interest was hardly seen. Rapeseed futures eased on the outlook for a bumper South American soybean harvest.

Asking prices for lauric oil fell again between $10 and $65 a tonne as sellers were trying to find buying interest but still buyers were not seen. Some dealers said buyers were not willing to buy into a falling market and players with short positions might try to tough it out until after the price outlook conference.