Palm oil steady in Europe after Indian tender news
Palm oil steady in Europe after Indian tender news
LONDON (Reuter): Palm oil prices were steady at midday yesterday in Europe following news that India's State Trading Corporation (STC) was tendering for palm olein.
Malaysian traders said yesterday morning the STC was seeking one or two parcels (6,000/12,000) ton of olein for Sept. 10 to 25 shipment.
Traders in Europe said it had bought two parcels of olein, but could give no further details.
"As far as we know the STC bought 12,000 tons, but no seems to know who the seller was or the price," said one.
They added it is expected to tender on a regular basis until the end of the month.
"The STC will be in the market on Wednesday and Friday until the end of September ahead of the local festivals in October," said another trader.
Over the past three weeks it is estimated to have bought around 42,000 tons of olein, including yesterday's tender.
"The private sector has been more active, but any buying from the STC is icing on the cake," said a trader.
At midday, crude palm oil prices were $2.50 up after October trading at $512.50 a ton cost, insurance and freight (cif).
Products were also $2.50 higher after olein fetched $527.50 for October, $528 for November/December and $525 and $527.50 for January/March.
In the soft oil sector weather concerns in Chicago boosted futures on the local market leading to gains of up to one guilder in soy oil prices in Europe, while rape oil was unchanged to 0.50 guilders down.
Coffee
Meanwhile, robusta coffee futures motored to a seven-week high yesterday on follow-through fund and speculative short-covering but traders said further gains could be limited.
The second-month November contract, London's benchmark, was driven to a high of $1,690 per ton, a level not seen since July 15, before finishing the morning trade $45 higher at $1,685.
Scale-up dealer hedge selling prevented a break above $1,690. Analysts said the way is open for coffee to rise towards $1,700 but it is unlikely to clear that hurdle.
Traders said the fund short covering was coming to an end.
"If it is not finished, it's nearly there," said one. "If they are buying again, they are going long."
The market made its $20 up opening due after New York posted gains for the sixth consecutive trading days.
The market found support from various factors including continued fears surrounding El Nino in Indonesia and Central America, and a possible Santos port strike in Brazil next week.
Traders in Asia said on Wednesday time was running out for an Indonesia coffee crop blighted by an El Nino-induced drought.
"But if there is no rain by November, the crop next year is finished," one trader said, adding that rains in October would salvage part of the crop.