Palm oil slightly lower in Europe

Palm oil slightly lower in Europe

LONDON (Reuter): Palm oil prices drifted lower at midday yesterday in Europe with easier futures markets in Asia and the U.S. pressuring prices.

However, traders said the underlying tone of the market remains fully steady.

Kuala Lumpur palm oil futures closed lower following the release of the Malaysian Palm Oil Registration and Licensing Authority's (PORLA) dated for April.

PORLA put local palm oil output at 733,245 tons, 7.24 percent above their end-March figure while stocks were 697,714 tons against 690,167 tons at end-March.

Exports during April were running at 570,067 tons against 579,642 tons at end-March.

Although the report was seen as bearish in Asia Europe sellers were reluctant to lower prices.

Traders said palm oil had not fallen as much as people had hoped and sellers were finding it difficult to find cheap replacement material when they made a sale.

"For this reason there are not many sellers about, but on the other hand there isn't much consumer interest at the moment which makes it a very difficult market to explain," said one trader.

At midday crude palm oil cif Europe was unchanged to US$2.50 down, but in a quiet market no business was reported.

Among products RBD palm oil was $5 down to unchanged and olein $2.50 to $5 lower after Jul/Sep traded at $562.50, $565 and $567.50 a ton fob Malaysian ports.

Coconut oil was little changed with sellers unchanged to $5 down while palmkernel oil was unchanged.

Lower Chicago futures overnight depressed soft oils with soy oil 0.50 to 1.25 guilders down and rape oil 0.50 to 1.50 guilders lower.