European palm oil prices eased on Friday, pressured by weaker Malaysian futures and a downturn in global markets. Asking prices for RBD palmolein on the European market dipped between $2.50 and $10 per tonne by the end of the trading day. The November-December position last traded at prices between $544 and $542.50, as much as $2.50 below the market but up to $1.50 above the previous session’s highest traded level.
Crude palm oil (CPO) prices were cut by up to $7.50, with the front October position dipping to $525 per tonne. European palm oil largely tracked losses in Malaysian futures on Friday, which retreated after rising to a seven-week high in early trading.
The benchmark November contract closed 1.1 percent down, snapping a five-day rally on weak local currency. Palm oil still ended the week up 5 percent but data showing higher production and inventory levels somewhat cooled the market on Friday. Prices were also pressured by easing global markets, as a drop in crude oil prices dragged commodities down and equities eased ahead of a US Federal Reserve decision next week on whether to raise interest rates.
Rapeseed oil prices were mixed, with the front October contract gaining 3 euros to 684 euro per tonne. But traders said a quiet market and slim biodiesel demand were keeping a lid on prices. “There’s limited trade and the biodiesel market is just not working,” one European trader said. “The outlook for the next few weeks is not very good.” In soybean oil prices, the front month posted a gain of 8 euros but other positions were cut by 3 euros. European traders said business was subdued as the market awaited a fresh soybean crop data from the US Department of Agriculture, due out later in the day.