Palm oil little changed at Euro veg oil opening

Palm oil little changed at Euro veg oil opening

LONDON (Reuters): Opening palm oil offers were little changed in Europe yesterday morning despite the limit-down close in Malaysia.

The Malaysian palm oil futures market closed the extended, 100 ringgit, limit-down mainly on currency factors.

News that Indonesia may soon review it's ban on crude and refined palm oil exports had little impact in Europe.

"For too long the market has been moving on rumors and comments in the Indonesian press. This time people want to see the facts before they jump," said one trader.

Indonesian government sources said yesterday the ban could be lifted at the end of February if local prices stabilize and production is sufficient.

Even if the ban is lifted exports will be subject to an export tax not exceeding 20 percent.

According to Indonesian press reports 198,352 tons of crude palm oil has piled up in Belawan port because of the ban.

Sources at the port said that on Monday all 136 tanks used for crude palm oil were already full.

"There is going to have to be a very controlled release of all that oil on to the market otherwise the price will nose dive and they can not afford that because they have already lost a lot of dollars as a result of the ban," said a trader.

Crude palm oil cif Europe opened with February and March unchanged while forwards positions were $2.50 down to $2.50 up after Apr/Jun traded at $580 a tonne cif.

Coconut oil started the day $5 to $2.50 up.

Soft oils opened with soy oil 0.50 to 0.25 guilders up and rape oil 0.25 guilders down to unchanged.