PARIS: European vegetable oils were firm on Monday, supported by a strong rise in Malaysia, but activity remained thin with some buyers seeing the recent rise as overdone.
Malaysian palm oil futures jumped to their highest level since March in Monday's session, driven by a fall in production and higher exports that kept inventory numbers lower than expected.
Activity in Europe was very light with only two trades reported in the vegetable oils market, both for crude palm oil which was trading more than $5 above Friday for October-December delivery at $725 a tonne.
Coconut oil was offered between $10 and $25 per tonne higher while palmkernel oil was up between $35 and $60 a tonne.
The market was buoyed by positive data on Monday from industry regulator, the Malaysian Palm Oil Board (MPOB), which said Malaysian palm oil stocks at end-August rose 8.8 percent to 1.94 million tonnes from the previous month.
But many buyers stayed out of the market.
"The (recent) rise could be a bit too quick too soon," a trader said. "There is a lack of fundamentals driving it, apart from the MPOB surprise."
Rapeseed oil prices were flat, pausing after last week's fall following a European Union decision to allow imports of soyoil-based Argentine biodiesel. Sellers' prices for rapeseed ended unchanged with September offered at 750 euros a tonne.
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