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.