Palm and lauric oils drift lower in Europe

Palm and lauric oils drift lower in Europe

LONDON (Reuters): Palm and lauric oil prices drifted lower
during Monday afternoon in a quiet European vegetable oil market.

Lower palm oil prices in Malaysia on profit-taking gave the
market a softer feel, but traders said they were awaiting further
developments in Indonesia.

"Soeharto has said Indonesia will abide by the IMF agreement
and that should mean a lifting of the palm oil export ban, but
after recent events people are wondering whether Indonesia really
will do as the IMF says," said one trader.

Buyers were reluctant to come out ahead of further meetings
between the IMF and the Indonesian government.

"Part of the agreement between Indonesia and the IMF is that
restrictions on exports are lifted, which means the ban on crude
palm oil and its products should end," said another trader.

Traders said there had been talk of a limited lifting of the
ban on certain palm oil products, but this would make little
difference to the market.

If, however the ban was lifted completely that would make a
very big difference to prices.

"Any buyer would be mad to show his hand for the next couple
of days," said one trader.

Talk of a possible ban on the export of coconut oil by
Indonesia remains in the background, but at the moment there is
no sign of a ban.

Soft oils were also lower at the close following an early down
turn in Chicago prices on the back of lower Asian markets.

At the close, crude palm oil cif Europe was $5 down to
unchanged while products were $5 to $15 lower with no further
business reported.

Coconut oil was $15 to $10 lower while palmkernel oil shed $15
a ton on neglected markets.

Dutch soy oil closed 0.50 guilders down to unchanged after Jan
traded at 127.50 guilders and Feb/Apr at 126 guilders a 100 kilos
fob ex-mill.

Rape oil was unchanged to 0.75 guilders up after Feb/Apr
traded at 127.25 guilders a 100 kilos fob ex-mill.

Traders said the overall soft oil volume was light.