Palm oil prices steady

Palm oil prices steady

LONDON (Reuter): Palm oil prices rallied during the morning on the Europe vegetable oil market yesterday, but activity was minimal, dealers said.

News that Indonesia had reduced import duty to zero percent on coconut and palm oil was partly behind the rally, but traders said most of the gains were a correction after Monday's falls.

"Prices fell too fast yesterday, so there was only one way they could go this morning," said a trader.

Crude palm oil gained US$5 to $7.50 after August deliveries were traded at $470 a ton. Palm products were unchanged to $7.50 higher.

Coconut oil attracted buying interest from European dealers and origins, but as the buyers appeared sellers withdrew.

Offers at midday were quoted around $10 up with buyers $7.50 to $10 below the sellers.

Soft oils were around 0.50 guilders down, following last night's tumble in Chicago on forecasts of normal or above normal rainfall in the main U.S. soybean growing areas.