ROTTERDAM: Palm oil on the European vegetable oils market eased on Wednesday on technical selling following recent sharp
ROTTERDAM: Palm oil on the European vegetable oils market eased on Wednesday on technical selling following recent sharp gains and due to disappointing Malaysian palm oil export numbers for September.
"Exports were expected to easily top Augusts' figures, but ended barely changed, which was a trigger for the market to come down from the sharp rally on worries over El Nino and the supply outlook," one broker said.
Palm oil was offered between $5 and $12.50 a tonne down from Tuesday after Malaysian palm oil futures closed between 60 and 76 ringgit per tonne lower, weighed down by the export data and as traders booked profits after recent gains, which were seen as overdone.
At 1730 GMT CBOT soyoil futures were between 0.33 and 0.40 cents per lb down in reaction to the USDA's quarterly stocks report, which was seen mildly bearish.
EU rapeoil was offered between one and three euros per tonne down from Tuesday, mostly tracking CBOT soyoil futures. A stronger dollar, which supports euro-priced products and slightly stronger rapeseed futures limited losses.
Palmkernel oil dropped sharply following a weak palm oil futures close and due to a strong dollar, which weighs on dollar-priced products.
Sellers were offering material as much as $60 down from Tuesday after both Dec/Jan and Jan/Feb shipments changed hands at $865 a tonne cif Rotterdam. Coconut oil remained untraded with asking prices around $25 a tonne down.
Losses were limited by concerns of a storm approaching the Philippines.