ROTTERDAM: Palm oil on the European vegetable oils market dropped on Wednesday, tracking a dip in Malaysian palm oil futures on the back of concerns over an escalating trade dispute between the United States and China.
Asking prices for palm oil were between $10 and $17 a tonne lower after Malaysian palm oil futures closed between 49 and 56 ringgit a tonne down. Weaker CBOT soyoil futures also weighed.
At 1630 GMT, CBOT soyoil futures were between 0.44 and 0.50 cents per lb lower, tracking sharply lower Chicago soybeans on fears of reduced demand for US supplies from top global soy buyer China. A sharp fall in energy markets pressured soyoil futures as well.
EU rapeoil was quoted between five and 14 euros per tonne lower, following the sharply weaker trend in Chicago soyoil futures and due to weakness in rapeseed futures on technicals and fading worries over a dry spell in rapeseed growing areas.
Pressure on rapeoil also came from lower energy prices, which weigh on vegetable oils because they could reduce demand from biodiesel producers.
Lauric oils were mostly offered between unchanged and $10 a tonne lower, following the weaker tone in palm oil and pressured by lack of demand.
Source: Brecorder
