Palm oil steady in Europe

Palm oil steady in Europe

LONDON (Reuters): Crude palm oil prices were steady at the opening of the European vegetable oil market yesterday.

Sellers were offering forward positions at the start of business with gains of around US$15 over their last offers on Tuesday.

Afloat crude palm oil was offered at $640, June at $645 while July and August/September were sellers at $650 a ton c.i.f. Europe.

Reports that Indonesian producers had committed as much as 80 percent of crude palm oil output to export during June and July caused concern among traders.

"The Indonesian government can't let this go on, the local cooking oil market is being starved of palm oil. They, the Indonesian Government, are going to come down with a very big hammer soon," said one trader.

Indonesia imposed a 40 percent export tax on palm oil, when it lifted its export ban in April. But the continuing decline of the rupiah has meant that it is still more profitable for producers to export than sell in the local market.