MARKET DEVELOPMENT
European Vegoils-Palm Oil Falls on Export Slowdown, Firm Dollar
European Vegoils-Palm Oil Falls on Export Slowdown, Firm Dollar
16/07/2015 (Reuters) - European palm oil prices werelower on Wednesday as a strong dollar put pressure on the marketand new Malaysian export data showed a slowdown in demand forJuly.
Crude palm oil prices were down between $5 and $7.50 a tonnewith the Aug/Sep position closing at $627.50.
RBD palmolein asking prices remained largely unchanged, buttrading activity suggested buyers continued to push down.Palmolein for Oct/Dec delivery last traded at prices between$605 and $600, down $2.50 to $10 from the previous day's trades.
The decrease was partially in response to a 15.1 percentdrop in Malaysian palm oil exports for July 1-15 from the sametime the previous month, according to figures released onWednesday by cargo surveyor Societe Generale de Surveillance.
Data from cargo surveyor Intertek Testing Services alsoshowed exports during that period fell 14.6 percent.
Prices were further squeezed by a rise in the dollar, afterthe U.S Federal Reserve confirmed plans for a widely-expectedhike in interest rates later this year.
Meanwhile, European soybean oil prices were also cut by $5,deepening losses from Tuesday's session. The shift mirrored asharp decline in Chicago prices, which dipped by 0.77 cents to31.63 cents per lb at 1634 GMT. The shift marked a drop ofnearly 2.4 percent from the previous day's close.
The cut in soybean oil prices follows news that soybeancrush rates reached record levels last month, as soymeal demandand crush margins rose. Forecasts for better weather in the U.S.Midwest, where heavy rains have threatened crops in recentmonths, have also placed pressure on prices this week.
Rapeseed oil prices were also down between 5 euro and 7 euroon Wednesday, tracking losses in other vegetable oil markets.But bidding prices indicated that dealers are still concernedabout a potential shortfall in this year's rapeseed crop. TheAug/Oct position last traded at 713 euro, 2 euro above thelowest asking price.
Germany's association of farm cooperatives forecast in Junea 20 percent reduction in domestic rapeseed output for 2015.
Unusually warm and dry weather across Europe since then hasadded to concerns about smaller harvests and poor cropconditions.
"I think, overall, we will see below 20 million (tonnes) inEurope," one trader said. "With less biodiesel right now, it'senough. But these are not bearish conditions in the end."EUROPEAN VEGOILS TRADES CIF Rotterdam unless otherwise stated - - - - - - - - - - - - - - - - - - - - - RAPEOIL Dutch/EU euro tonne fob exmill
Aug/Oct 713PALM OLEIN RBD dlrs tonne fob Malaysia
Oct/Dec 605/603/600 Jan/Mar 617.50/615/612.50
Crude palm oil prices were down between $5 and $7.50 a tonnewith the Aug/Sep position closing at $627.50.
RBD palmolein asking prices remained largely unchanged, buttrading activity suggested buyers continued to push down.Palmolein for Oct/Dec delivery last traded at prices between$605 and $600, down $2.50 to $10 from the previous day's trades.
The decrease was partially in response to a 15.1 percentdrop in Malaysian palm oil exports for July 1-15 from the sametime the previous month, according to figures released onWednesday by cargo surveyor Societe Generale de Surveillance.
Data from cargo surveyor Intertek Testing Services alsoshowed exports during that period fell 14.6 percent.
Prices were further squeezed by a rise in the dollar, afterthe U.S Federal Reserve confirmed plans for a widely-expectedhike in interest rates later this year.
Meanwhile, European soybean oil prices were also cut by $5,deepening losses from Tuesday's session. The shift mirrored asharp decline in Chicago prices, which dipped by 0.77 cents to31.63 cents per lb at 1634 GMT. The shift marked a drop ofnearly 2.4 percent from the previous day's close.
The cut in soybean oil prices follows news that soybeancrush rates reached record levels last month, as soymeal demandand crush margins rose. Forecasts for better weather in the U.S.Midwest, where heavy rains have threatened crops in recentmonths, have also placed pressure on prices this week.
Rapeseed oil prices were also down between 5 euro and 7 euroon Wednesday, tracking losses in other vegetable oil markets.But bidding prices indicated that dealers are still concernedabout a potential shortfall in this year's rapeseed crop. TheAug/Oct position last traded at 713 euro, 2 euro above thelowest asking price.
Germany's association of farm cooperatives forecast in Junea 20 percent reduction in domestic rapeseed output for 2015.
Unusually warm and dry weather across Europe since then hasadded to concerns about smaller harvests and poor cropconditions.
"I think, overall, we will see below 20 million (tonnes) inEurope," one trader said. "With less biodiesel right now, it'senough. But these are not bearish conditions in the end."EUROPEAN VEGOILS TRADES CIF Rotterdam unless otherwise stated - - - - - - - - - - - - - - - - - - - - - RAPEOIL Dutch/EU euro tonne fob exmill
Aug/Oct 713PALM OLEIN RBD dlrs tonne fob Malaysia
Oct/Dec 605/603/600 Jan/Mar 617.50/615/612.50