ROTTERDAM: A sharp drop in mineral oil on worries about the global economy and the euro debt crisis pressured asking prices on the European vegetable oil market on Wednesday, market sources said.
"The cash markets followed the weak trend in mineral oil on fears for stagnation in the global economy and continued worries that the euro debt crisis will not be solved soon. Buyers were mostly holding back waiting to see how far prices will go down," one broker said.
At 1730 GMT CBOT soyoil futures were between 0.58 and 0.61 cents per lb down following weak mineral oil.
Liquid oils, soyoil, sunoil and rapeoil, were quoted between unchanged and five euros per tonne down from Tuesday, following CBOT soyoil, lower rapeseed futures and the drop in mineral oil with losses limited by a strong dollar, which supported euro-priced products. Feb/April EU rapeoil changed hands at 940 euros per tonne fob exmill, up one euro from Tuesday.
Palm oil was offered between flat and $2.50 a tonne down from Tuesday following rival CBOT soyoil and mineral oil after Malaysian palm oil futures closed between 20 and 50 ringgit per tonne up on technical buying and bargain hunting following recent losses.
Feb/March RBD palm olein traded at $1,047.50 and $1,045 a tonne fob Malaysia, April/June traded $10 up from Tuesday between $1,010 and $1,030 and July/Sept fetched between $1,002.50 and $1,010. Crude palm oil changed hands at $1,027.50 and $1,015 a tonne cif Rotterdam for April/June, unchanged from Tuesday.
Lauric oils were as much as $15 a tonne up from Tuesday following the trend in palm oil futures. Buyers hardly tested asking prices and no deals were reported.
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