MARKET DEVELOPMENT
European Vegetable Oils Fall on Argentine Exchange Move
European Vegetable Oils Fall on Argentine Exchange Move
27/01/2014 (Business Recorder) - The European vegetable oils market fell on Friday due to weakness in the futures markets and news that Argentina was to ease its strict exchange controls. "The market was a tad lower already during the day because of weakness in both CBOT soyoil futures and Malaysian palm oil futures. The Argentina exchange control move led to an easier sentiment also," one broker said.
The easing of exchange controls could lead to a further drop in the value of the peso, which might encourage a rise in Argentine exports. Palm oil was offered between $5 and $10 a tonne down from Thursday after Malaysian palm oil futures closed between 8 and 15 Malaysian ringgit ($4.50) per tonne down as investors booked profits from a near three-week high touched in the previous session.
April/June RBD palm olein traded $2.50 a tonne down from Thursday at $795 a tonne fob Malaysia and July-September fetched $790, also down $2.50. At 1700 GMT CBOT soyoil futures were between 0.14 and 0.59 cents per lb down due to a bumper soybean harvest in South America. Traders expected that China would switch bookings of soybean cargoes to Argentina and Brazil from the United States in coming weeks.
Liquid oils - rapeoil, soyoil and sunoil - were offered between 1 euro and 6 euros per tonne down, tracking CBOT soyoil and because of a dip in the dollar, which weighs on euro-priced products. Easier rapeseed futures also weighed on oils. February-April EU rapeoil changed hands at 683 euros ($930) per tonne fob exmill and both May-July and August-October traded three euros down from Thursday, down to 687 euros.
EU sunoil traded $2.50 a tonne down from Thursday at $915 a tonne extank for April/June. Lauric oils were offered between $5 and $15 a tonne down from Thursday in sympathy with palm oil after both June/July and July-August coconut oil changed hands at $1,270 a tonne cif Rotterdam. No trades were reported in palmkernel oil.
The easing of exchange controls could lead to a further drop in the value of the peso, which might encourage a rise in Argentine exports. Palm oil was offered between $5 and $10 a tonne down from Thursday after Malaysian palm oil futures closed between 8 and 15 Malaysian ringgit ($4.50) per tonne down as investors booked profits from a near three-week high touched in the previous session.
April/June RBD palm olein traded $2.50 a tonne down from Thursday at $795 a tonne fob Malaysia and July-September fetched $790, also down $2.50. At 1700 GMT CBOT soyoil futures were between 0.14 and 0.59 cents per lb down due to a bumper soybean harvest in South America. Traders expected that China would switch bookings of soybean cargoes to Argentina and Brazil from the United States in coming weeks.
Liquid oils - rapeoil, soyoil and sunoil - were offered between 1 euro and 6 euros per tonne down, tracking CBOT soyoil and because of a dip in the dollar, which weighs on euro-priced products. Easier rapeseed futures also weighed on oils. February-April EU rapeoil changed hands at 683 euros ($930) per tonne fob exmill and both May-July and August-October traded three euros down from Thursday, down to 687 euros.
EU sunoil traded $2.50 a tonne down from Thursday at $915 a tonne extank for April/June. Lauric oils were offered between $5 and $15 a tonne down from Thursday in sympathy with palm oil after both June/July and July-August coconut oil changed hands at $1,270 a tonne cif Rotterdam. No trades were reported in palmkernel oil.
Copyright Reuters, 2014