19 March 2014 23:59 [Source: ICIS news]
LONDON (ICIS)--Second quarter fatty acids negotiations have slowed down in Europe, with a decline in palm feedstock costs leading to uncertainty among some buyers over the possible impacts on palm-based product, sources said on Wednesday.
One trader noted that those buyers who are yet to cover their requirements for the second quarter are now deliberately delaying their negotiations.
“They are hopeful the lower feedstock costs will lead to cheaper palm-based fatty acids,” it said.
The trader saw palm stearic fatty acids sold for the second quarter at €970-990/tonne FD (free delivered) NWE (northwest Europe) earlier in the month.
However, the bullish outlook given by experts at a key industry event has since resulted in prices increasing by €10-20/tonne.
A similar impact was also seen with palm oleic fatty acids grades, which were trading at €1,120-1,200/tonne FD NWE prior to the event, and are now at €1,230-1,250/tonne FD NWE, the trader said.
One buyer said it concluded its negotiations early for the second quarter, paying €1,140/tonne FD NWE for palm oleic acid, and €1,135/tonne FD NWE for tallow oleic acid.
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