European vegoils: palm oil lower on China's demand

06 Jan, 2016

Palm oil on the European vegetable oils market eased on Monday, the first trading day in 2016, on worries over the economy of top buyer China, which could slow demand. "The market was slow overall as players have to start up again following the holiday season and took today mostly for reorientation," one broker said.
Palm oil was mostly offered between $5 and $20 a tonne down after Malaysian palm oil futures closed between 35 and 55 ringgit ($8.1 and $12.7) per tonne lower on slowing exports as demand from China was seen unlikely to improve despite the upcoming Lunar New Year holiday.
At 1730 GMT CBOT soyaoil futures were between 0.79 and 0.91 cents per lb lower on concerns over the Chinese economy and due to beneficial growing weather in the Brazilian soyabean belt. A strong dollar and easier energy markets also weighed. Liquid oils - rapeoil, soyaoil and sunoil - were mostly offered between 5 and 13 euros per tonne lower, tracking weak CBOT soyaoil futures and a dip in rapeseed futures on a brighter global oilseed supply outlook.
Lauric oils were offered between $10 a tonne up and $10 down in thin trade with still few sellers issuing material. Weak palm oil and a strong dollar, which weighs on dollar-quoted products, pressured prices. Coconut oil was offered at a premium of around $290 a tonne over palmkernel oil.

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