Prices in Europe's vegetable oil market were generally weak on Tuesday in a pullback from recent strength and positioning ahead of two key crop reports to be issued on Wednesday. The main European trade was reported in palm olein oil and rapeseed oil. "The market will receive a lot of data tomorrow and there is a risk-off atmosphere today," one European trader said. "There is also a limited retreat in some oils after the strong prices rises we saw for parts of last week."
The US Department of Agriculture (USDA) will issue its world supply and demand report for soyabeans and grains on Wednesday. A monthly report on Malaysia's palm ending stocks, output and exports by industry regulator the Malaysian Palm Oil Board is also due. In Europe, soyaoil for June delivery fell 20 euros a tonne to 695 euros a tonne fob ex mill. August/October delivery rapeseed oil traded at 715 and 717 euros a tonne fob exmill with no comparative trade reported on Monday. Sales offers for August/October rapeseed oil ended the day down 1 euro at 715 euros.
"The market is shrugging off strength in crude mineral oil which has recently added support and seems to be focusing on the USDA report tomorrow which could underline large global soya supplies after large crops in South America," one trader said. "Unusually big soyaoil exports have come out of Brazil in recent weeks." A drop in Malaysian palm oil futures on Tuesday helped undermine European prices for tropical oils. October/December palm olein oil traded several times in Europe at between $635 and $640 a tonne fob Malaysia, down as much as $11 on Monday's traded levels. July/September palm olein changed hands at $636 and $640 a tonne fob Malaysia, with no comparative trade reported on Monday.
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