Palm oil seen steadier on Euro veg oils mart

Palm oil seen steadier on Euro veg oils mart

LONDON (Reuter): Palm oil prices are expected to move higher during the coming weeks following the Palm and Lauric Oil forum held in Kuala Lumpur last weekend.

However, activity in Europe over the next two weeks will be disrupted by holidays in most of the area.

The Netherlands will be closed on April 30 for the Queen Birthday holiday, while the rest of Europe, except the Netherlands and the U.K. will be closed on May 1 for May Day.

The following the week the U.K. will be closed on May 5 for the May Day holiday while most of the rest of Europe will be off on May 8 for Ascension Day.

"Sentiment following the forum will carry palm oil higher for a while but unless there is some major offtake, I see no reason for any excitement," said one trader.

Other said palm oil remains overpriced and needed to regain it's competitiveness.

Traders will be looking for some firmer clues as to where the market is going from figures release by Caleb Brett and SGS on Wednesday.

"People will say they are waiting for the cargo surveyor figures, but once they get them they do nothing and wait for the PORLA data in the middle of the month," said another trader. Laurie oils are expected to take their lead from palm oil.

In the soft oils sector demand in Europe remains slow and the market will stay linked mostly to currency with Chicago a background factor.