European vegoils-Prices trim gains in hesitant trade before USDA report

PARIS: Prices on the European vegetable oils market gave up most of their early gains on Tuesday, as initial support from higher palm oil futures in Malaysia was offset by weakness in the soybean complex.

Activity was restrained, with crop markets awaiting the US Department of Agriculture's (USDA) monthly supply and demand report, which was released at the end of the European session.

Asking prices for crude palm oil were flat to up $15 a tonne compared with Monday. They were marked up as much as $20 in early trading after Malaysian futures saw a bounce to break a run of three falling sessions.

A later fall in US soybean and soyoil futures, pressured by a further upward revision to Brazil's official forecast for its ongoing soybean harvest, curbed European vegetable oil prices, traders said.

The USDA's crop report also included an upward revision to expected soybean output in Brazil as well as Argentina, underlining a bearish backdrop of large global supplies of the oilseed.

US soybean futures extended losses after the report, which may weigh on European prices in Wednesday's session.

Prices of lauric oils in Europe were also capped by a lack of buying interest, traders said.

Palmkernel oil offers were mostly flat to $5 lower by the end of the session after being initially quoted higher. Coconut oil was offered up to $25 lower after being priced little change in earlier trading.

Euro-priced rapeseed oil also faced pressure from a rise in the euro against the dollar. Offers were flat to lower in late dealings.