European vegetable oil prices slid on Monday, as anxiety over a slowdown in the Chinese economy triggered a sharp sell-off across commodity markets. Asking prices for rapeseed oil were cut by up to 28 euros. The September/October position last traded at 620 euros per tonne, 10 euros below the lowest asking price. Soyabean oil dipped by as much as 18 euros, with prices for August stocks slipping to 648 euros per tonne.
Palm oil products lost between $15 and $35 per tonne and stocks of October/December RBD palm olein last traded at between $500 and $495 per tonne, down as much as $20 on the previous session. Crude palm oil (CPO) prices dropped fell as much as $35, with the October/December position dipping to $495 per tonne by the end of trading. The slump in European prices tracked a broader fall in global commodity and equity markets, fuelled by renewed fears of an economic slowdown in China.
Crude oil dropped to a 6-1/2 year low, while Chinese stock markets tumbled 8 percent in their biggest single-day loss since 2007. Chicago futures also reacted sharply to the prospect of a downturn in China, the world's top soyabean buyer. The November soyabean contract fell to a six-year low of $8.55 per bushel, before inching backk up to $8.84-1/4 at 1640 GMT Soyabean oil slid with the September position dipping by 3.4 percent to 26.43 cents per lb. European traders said concerns over China dampened activity as buyers held back in anticipation of a further slide in prices. "Because of the difficulties with China, everything is in the negative at the moment," said one European trader.
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