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Asia Coconut Oil-Europe seen up $5-10 this week

MANILA: Coconut oil prices in Europe are likely rise $5 to $10 per tonne CIF this week on the back of stronger palm oil and soyoil prices, vegetable oil dealers in Manila said on Monday.

"Weather worries in the US soyabelt are affecting other oils, including coconut oil," said one trader.

A forecast by the National Weather Service last week of warm and dry conditions in the US Midwest, the main soybean growing area in that country, pulling up soyoil prices higher, dealers said.

Malaysian palm oil futures jumped in early trade on Monday, boosted by strong gains in the Chicago soyoil futures on Friday, they said.

Malaysia is the world's largest exporter of palm oil while the US is the major shipper of soyoil.

Palm kernel oil is a direct competitor to coconut oil in the oleochemicals industry. The main export markets for coconut oil are in Europe and the United States.

"Last week, coconut oil prices in Rotterdam were nearly unchanged. For this week, I see prices going up by $5 to $10 per tonne CIF," a second trader said.

Coconut oil prices for April/May shipments were quoted between $540 and $550 per tonne CIF late last week, according to data from the United Coconut Associations of the Philippines Inc. -Reuters