LONDON (ICIS)--Lower tallow and palm oleic acid spot prices are now being heard in the European market, sources said on Wednesday. ?xml:namespace>
It is thought that softening feedstock costs are starting to impact on offers in the spot market, although some participants believed that certain suppliers may be lowering offers in order to shift material.
One buyer said it was offered palm oleic acid at €1,090/tonne FD (free delivered) NWE (northwest Europe) for August, while tallow oleic acid offers were at €1,060/tonne FD NWE, both lower than third-quarter contract prices.
Following weeks of declines, feedstock palm kernel oil values rebounded slightly this week. One producer said it had received less interest from consumers in purchasing palm-based acids as a result.