European vegoils firm with outside markets

ROTTERDAM: Prices on the European vegetable oil market rose on Monday following strong performances in agricultural futures on the back of recovering equities markets and mineral oil prices, market sources said.

"Prices moved up following outside markets but business was slow because of a public holiday in most of Catholic Europe which caused a lack of participation," one broker said.

At 1630 GMT CBOT soyoil futures were between 0.82 and 0.98 cents per lb up on a weak dollar and stronger mineral oil prices, plus follow through support from bullish USDA data.

Liquid oils, soyoil, rapeoil and sunoil, were offered between three and 15 euros per tonne up from Friday following the trend in Chicago and higher rapeseed futures on the back of forecasts for an almost 30 percent drop in German 2011 rapeseed production compared to the 2010 crop. Nov/Jan EU rapeoil changed hands at 940 a tonne fob exmill.

EU sunoil changed hands between $1,282.50 and $1,287.50 a tonne extank.

Palm oil was offered between $12.50 and $27.50 a tonne up from Friday after Malaysian palm oil futures closed between 52 and 95 ringgit per tonne up on good exports for the first 15 days of August and belief that a lower production could reduce palm oil stocks.

Oct/Dec RBD palm olein traded $15 up from Friday at $1,095 and $1,100 a tonne fob Malaysia, Jan/March changed hands at $1,085 and $1,090, up $17.50 and April/June fetched between $1,085 and $1,095 a tonne fob.

Lauric oils were offered $30 to $70 a tonne up from Friday following the trend in liquid and palm oil and because of the weak dollar, which supports dollar-priced products. Asking prices were hardly tested and no deals were reported.

Copyright Reuters, 2011