HAMBURG, Sept 8 (Reuters) - Rapeseed oil prices fell again on Friday in Europe’s vegetable oils market after selling by the biofuels fuels industry following a European Union decision to allow imports of soyoil-based Argentine biodiesel.
“It looks like Europe will be importing significant volumes of Argentine biodiesel in a matter of weeks and this will reduce the need for rapeseed oil used as a raw material for European biodiesel production,” one European trader said.
“There was repeated selling again today of rapeseed oil by both European biodiesel producers and oil companies.”
Rapeseed oil for November 2017 and January 2018 traded at 12 euros to 14 euros a tonne below Thursday’s levels. Rapeseed also traded in a series of delivery positions up to October 2018 as biodiesel producers disposed of their supplies, traders said.
Prices for Dutch and German-produced rapeseed oil ended the day 6 euros to 10 euros a tonne lower for delivery positions from September 2017 and April 2018.
Argentina will regain access to the European Union’s biodiesel market within three weeks after its successful World Trade Organization challenge to Europe’s anti-dumping duties on the fuel, the EU said on Thursday.
The EU will lower sharply the tariffs it has imposed on Argentine biodiesel for the past four years by Sept. 28.
Europe produces about 10 million tonnes of biodiesel annually and it is expected that about 1.5 million tonnes will be replaced by imports of cheap soyoil-based Argentine biodiesel, the association of German biofuels producers said.
“In anticipation of the decision, the first tankers with biodiesel from Argentina have already arrived in European ports,” the association said.
Brisk trade was reported in crude palm oil, coconut oil and palmkernel oil in Europe on Friday.
Tropical oils remained firm after palm shot up on Thursday on expectations the EU decision would divert more Argentine soyoil from food exports competing with palm to biodiesel production.
But the rise was capped by a fall in Malaysian palm futures on Friday on profit-taking after surging to almost 6-1/2 month highs on Thursday following the EU’s decision.
In Europe, sellers’ prices for crude palm oil ended up $2.50 a tonne for September-December 2017 delivery.
EUROPEAN VEG OILS TRADES CIF Rotterdam unless otherwise stated - - - - - - - - - - - - - - - - - - - - - - Sep 8, 2017 – 1600 GMT RAPEOIL Dutch/EU euro tonne fob exmill Nov/Jan 730/728 Feb/Apr 715 Aug/Oct 695 CRUDE PALM OIL Sumatra/Malaysia slrs option dlrs tonne Sept 717.50, Oct/Dec 717.50/720 (720 traded several times) COCONUT OIL Phil/Indo, dollars a tonne cif Rotterdam Sept/Oct 1555 PALM OLEIN RBD dlrs tonne fob Malaysia Oct 697.50 Jan/Mar 690/691 Apr/Jun 690 Jul/Dec 18 680 PALMKERNEL OIL Mal/Indo, dollars a tonne cif Rotterdam Oct/Nov 1280 Nov/Dec 1270 Dec/Jan 1260
Reporting by Michael Hogan; editing by David Clarke