950824

European veg oils drift lower in line with futures

LONDON: European vegetable oil prices drifted lower but cautious sellers would not allow prices to fall out of line with losses in overseas futures markets.

Palm oil prices in Europe were $2.50 to $7.50 down from last night's close on talk that India passed at its tender yesterday.

"It seems that India did buy, but later cancelled the deal and that's when prices in the Far East fell," said a Sinapore based trader.

Talk that India was in the market again this morning failed to stop the fall in prices.

"There was talk of another tender but I think they (India) will let the dust settle before they come back," said one trader.

"I think the market will consolidate at these levels and then we will see some more realistic prices tomorrow," he added.

Crude palm oil cif Europe was offered $5 to $7.50 down at midday in a tradeless market.

Palm products had lost $2.50 to $7.50 in Europe by the close of the Malaysian markets.

Coconut oil shed $2.50 to $5 after Sep/Oct traded at $650 a tonne cif.

Palmkernel oil was mixed at $2.50 down to $5 up.

Soft oils prices were mostly easier as concern over weather-related yield losses in the U.S. Midwest faded.

Dutch soy oil sellers were 0.50 guilders down to unchanged while Dutch/EU rape oil offeres were mixed at 0.50 guilders lower to 0.50 guilders higher.-Reuter