MARKET DEVELOPMENT
European Vegoils-Palm Oil Down on Improved Supply Outlook
European Vegoils-Palm Oil Down on Improved Supply Outlook
04/01/2014 (Business Recorder) - Palm oil on the European vegetable oils market eased on Friday on an improved supply outlook.
"The cash market eased on news that palm oil output in Indonesia rose in 2013 and will grow substantially in 2014," one broker said.
"A strong dollar also weighed on dollar-priced products. Buyers were looking for bargains and mostly holding back to see how far prices will come down."
Palm oil was offered between $2.50 and $10 a tonne down from Thursday after Malaysian palm oil futures closed between three and 13 ringgit per tonne down on expectations for improved supplies.
April/June RBD palm olein traded $15 down from Thursday, from $817.50 to $812.50 a tonne fob Malaysia and July/Sept changed hands at $807.50 and $805 fob.
Crude palm oil fetched $880 a tonne cif Rotterdam for January shipment and March shipment traded at $892.50 cif.
At 1700 GMT, CBOT soyoil futures were between 0.04 and 0.14 cent per lb down following the trend in CBOT soybeans on news that private analyst Informa Economics had raised its 2013 US soybean crop yield and production forecasts.
Informa pegged the 2013 crop at 3.329 billion bushels with a yield of 44.0 bushels per acre, up from a prior forecast of 3.298 billion bushels and 43.3 bpa.
Liquid oils soyoil, rapeoil and sunoil were offered between unchanged and one euro per tonne down from Thursday, following CBOT soyoil and slightly easier rapeseed futures. Losses were limited because a stronger dollar supported euro-priced products.
Aug/Oct EU rapeoil changed hands at 717 euros per tonne fob exmill.
Lauric oils were offered between unchanged and $5 a tonne down from Thursday in sympathy with easier palm oil and because the stronger dollar weighed on products priced in that currency. Buyers showed little interest and no deals were reported.
"The cash market eased on news that palm oil output in Indonesia rose in 2013 and will grow substantially in 2014," one broker said.
"A strong dollar also weighed on dollar-priced products. Buyers were looking for bargains and mostly holding back to see how far prices will come down."
Palm oil was offered between $2.50 and $10 a tonne down from Thursday after Malaysian palm oil futures closed between three and 13 ringgit per tonne down on expectations for improved supplies.
April/June RBD palm olein traded $15 down from Thursday, from $817.50 to $812.50 a tonne fob Malaysia and July/Sept changed hands at $807.50 and $805 fob.
Crude palm oil fetched $880 a tonne cif Rotterdam for January shipment and March shipment traded at $892.50 cif.
At 1700 GMT, CBOT soyoil futures were between 0.04 and 0.14 cent per lb down following the trend in CBOT soybeans on news that private analyst Informa Economics had raised its 2013 US soybean crop yield and production forecasts.
Informa pegged the 2013 crop at 3.329 billion bushels with a yield of 44.0 bushels per acre, up from a prior forecast of 3.298 billion bushels and 43.3 bpa.
Liquid oils soyoil, rapeoil and sunoil were offered between unchanged and one euro per tonne down from Thursday, following CBOT soyoil and slightly easier rapeseed futures. Losses were limited because a stronger dollar supported euro-priced products.
Aug/Oct EU rapeoil changed hands at 717 euros per tonne fob exmill.
Lauric oils were offered between unchanged and $5 a tonne down from Thursday in sympathy with easier palm oil and because the stronger dollar weighed on products priced in that currency. Buyers showed little interest and no deals were reported.