29/11/2014 (Reuters) - Palm oil on the on the European vegetable oils market eased on Thursday with Malaysian palm oil futures, due to a fall in mineral oil prices which could lead to reduced demand for vegetable oils from biodiesel producers. "The market was quiet overall due to the absence of a lead from Chicago due to the Thanksgiving Day holiday, and lack of participants because of the annual Grofor trade dinner in Hamburg and a palm oil conference in Indonesia. The sharp fall in mineral oil caused some selling on expectations palm oil futures might drop in sympathy on Friday," one broker said.

Palm oil was offered between $5 and $17.50 a tonne down from Wednesday after Malaysian palm oil futures closed between 18 and 41 ringgit per tonne lower. The plunge in mineral oil prices stoked concerns that palm oil may lose its appeal as an additive in biofuels, while rumours of palm cargo defaults in India spooked investors.

Liquid oils - EU rapeoil, soyoil and sunoil - were offered between 2 and 5 euros per tonne down from Wednesday in sympathy with a drop in rapeseed futures on the back of weakness in mineral oil and because of slack demand due to a lack of participation because of the Hamburg dinner on Thursday. Lauric oils were offered between $5 and $20 a tonne down from Wednesday, in sympathy with lower palm oil and due to some selling on the back of the falling mineral oil prices.