European vegoils ease on global economy concerns

ROTTERDAM: Asking prices on the European vegetable oil market were weaker on Monday on lower outside markets due to worries about the global economy, market sources said.

"Palm oil futures dropped early but there was no direction from Chicago markets due to a public holiday. With mineral oil and equities markets falling also the European cash market followed. Buyers were holding back waiting to see where the bottom is and not much was going on," one broker said.

Palm oil was offered $5 to $10 a tonne down from Friday after Malaysian palm oil futures closed between 30 to 46 ringgit a tonne down in light trade on concern about the global economy.

Jan/March RBD palm olein changed hands between $1,107.50 and $1,090 a tonne fob Malaysia, down $12.50 from Friday and April/June traded unchanged April/June at $1,105 and $1,100.

Liquid oils, soyoil rapeoil and sunoil, were offered flat to 10 euros per tonne down from Friday, following a dip in rapeseed futures and in sympathy with the weakness in equity markets. Bids were scarce and no deals were reported.

Lauric oils were offered between $10 a tonne up and $5 lower mostly following the trend in palm oil but asking prices were hardly tested and no business was seen.

Copyright Reuters, 2011