European palm oil prices down on Malaysian slide

European palm oil prices eased on Friday, pressured by weak Malaysian futures and a broader slump in global markets. Asking prices for RBD palmolein fell by up to $7.50, with the January-March shipment sliding to $545 per tonne. That position last traded at prices between $546.50 and $541 per tonne, $7 below the previous day's lowest traded level. Most crude palm oil (CPO) positions also lost between $2.50 and $7.50 per tonne. The front month eased by $5 to $512.50 per tonne.
The market was weighed by weaker Malaysian futures, which dipped on news that India has raised its import tax on crude and refined vegetable oils. The benchmark December palm oil contract closed 1.1 percent down on Friday. Overall, palm oil futures have still gained 5.6 percent this month, mostly on the back of a weakening local currency.
"At first, the market was a little bit thin, so therefore it seemed a bit higher," said one European trader. "But now sellers are coming back and Malaysia also closed down. It will not be a surprise if, on Monday, we see lower levels again." Prices were further squeezed by a slide in European and US equities after the Federal Reserve opted to keep interest rates unchanged, citing concerns over the health of the global economy. Chicago soya futures, meanwhile, were under pressure from prospects of a good US harvest and record soya plantings in Brazil.
Late in the day, Brazilian analyst Safras & Mercado estimated the country's soya crop plantings for next year at a record 100.54 million tonnes, up from a previous forecast of 99.3 million tonnes in its July. The November soyabean contract slid 1.78 percent to$8.68-34 per bushel by 1627 GMT. December soyaoil was down 2.49 percent to 26.20 cents per lb. European soyabean oil prices followed suit, sliding by up to 8 euros by the end of trading. The front position was cut by 3 euros to 627 euro per tonne.
Rapeseed oil eased in sympathy with other vegetable oils as all positions fell by 5 to 8 euros per tonne. The November-January contract last traded at 674 and 673 euros, broadly in line with the market. Sunoil prices were mostly cut by 5 euros, with the January-March position easing to 800 euros per tonne. Coconut oil, meanwhile, rebounded after seeing some sharp losses in the previous session. October-November coconut oil last traded at $1,020, on par with asking prices but $20 above the lowest traded level a day earlier.