LONDON, Aug 6(Reuters) - European palm oil prices remained
under pressure on Thursday as concerns over a build-up in
Malaysian stocks continued to weigh on the market.
Asking prices for RBD palmolein dipped between $2.50 and $5
by the end of the trading day. The Oct/Dec contract last traded
between $550 and $552.50 per tonne, as much as $7.50 below the
lowest asking price.
Crude palm oil (CPO) asking prices were also mostly lower,
with the Aug15 and Sep15 positions both losing $2.50 per tonne.
CPO for Oct/Dec shipment last traded at $585 per tonne.
The dip reinforced losses from the previous day, when
European prices were cut by up to $12 in response to a slide in
Malaysian futures. The fall in both markets was driven by
concerns about growing Malaysian palm oil stocks as demand from
China eases and exports weaken.
A Reuters poll of six traders, analysts and planters on
Wednesday estimated that Malaysian stocks for July will rise by
1.6 percent, as exports for that month dip by 6.9 percent. The
country's output, meanwhile, was expected to climb to 1.78
million tonnes, up 1 percent from June.
Traders said the market was showing some signs of steadying
on Thursday, but buyers were still weary of a potential
oversupply.
"It's because we have a building up in stocks and hardly any
demand," one European trader said. "The buyers are all waiting
because they expect the market to go down further."
Rapeseed oil prices also slipped by up to 4 euros, with the
Nov/Jan position last offered at 699 euro per tonne. Feb/Apr
stocks last traded at prices ranging between 704 and 701 euro
per tonne, broadly in line with asking prices.
Soybean oil prices, meanwhile, gained between $5 and $10 per
tonne on forecasts for dry weather in the U.S. Midwest.
Chicago soybean oil futures were slightly higher, with the
Aug. BOQ5 contract rising by 0.37 percent to 29.74 cents per lb
at 1641 GMT.
November soybean futures SX5 slid by 0.89 percent by 1741
GMT after analytics firm Informa Economics increased its soybean
crop forecast for the United States.
EUROPEAN VEG OILS TRADES
CIF Rotterdam unless otherwise stated
- - - - - - - - - - - - - - - - - - - - - -
Aug 6, 2015 - 1600 GMT
RAPEOIL Dutch/EU euro tonne fob exmill Feb/Apr 704/701
CRUDE PALM OIL Sumatra/Malaysia slrs option dlrs tonne cif R'dam
Oct/Dec 585
PALM OLEIN RBD, dollars a tonne fob Malaysia Traded Oct/Dec
552.50/550 Jan/Mar 565/562.50/560 Apr/Jun 575