KL palm oil ends lower on EU news

KL palm oil ends lower on EU news

KUALA LUMPUR (Reuters): Malaysian palm oil futures closed lower on Tuesday on renewed selling as the European Union (EU) decided not to ban the use of animal fats in feed rations.

A ban would have boosted exports of vegetable oils.

The EU on Monday formally banned the use of meat-based animal feed following Europe's latest scare over mad cow disease.

The benchmark third-month February futures contract ended down 38 ringgit at 832 ringgit ($218.95) a tonne, the day's low.

Traders expected the market to test its recent low of 814 ringgit this week.

Physical palm oil prices also retreated due to weaker futures and lack of demand for refined products, traders said.

December (south) crude palm oil was offered at 800 ringgit a tonne against bids at 790, and trade was reported at 800 to 795.

Among refined products, December RBD palm oil was offered at $225 a tonne FOB and January at $230.

There were offers for December RBD palm olein at $240 and January at $242.50.

December RBD palm stearin was offered at $205 and December palm fatty acid distillate at $162.50.