Palm oil firm prices stable in Europe

Palm oil firm prices stable in Europe

LONDON (Reuter): Palm oil prices firmed on the European vegetable oil market following the release of lower than expected Malaysian stock figures by PORLA yesterday.

Malaysia's Palm Oil Registration and Licensing Authority (PORLA) put end-August stocks at 575,358 tons against trade expectations of 620,000 to 630,000 tons.

Production was put at 702,076 tons a rise of 3.63 percent over July.

But traders expressed doubts about the stock figures.

"The local disappearance rate seems on the high side," said a trader.

Crude palm oil CIF (cost, insurance and freight) price Europe was marked up US$7.50 to $12.50 a ton with one early traded reported at $567.50 a ton for October.

Malaysian palm products were $2.50 to $12.50 higher in Europe at midday.

However, buyers were not following the market.

"People are being cautious because they don't really believe the local disappearance rate. Also the Indonesian market is falling very quickly and in many minds this is the key factor at the moment," said a trader.

"We have seen Malaysian prices go up this morning on the PORLA figures but this is only a temporary blip."

"The lower Indonesian market will soon pull prices down again," said another trader.

Lauric oils were also firm with coconut oil $10 to $5 higher after August/September traded at $685 and November/December at $675 a ton CIF.

Palmkernel oil was offered $7.50 to $5 in a so far tradeless market.

Soft oils were mixed this morning with Dutch soy oil 0.50 guilders down to 0.50 guilders up and Dutch/EU rape oil unchanged to 0.50 guilders lower.

Traders said buyers were not following the sellers.