Summer slow down

So July and August are normally quieter trading periods as large numbers of European buyers take holidays. This year really is no different then before with less business but with US trade war hotting up there maybe more to this summer. Palm oil continues to be weak with little beyond currency differences to pull prices up. Whilst demand seems to have picked up slightly higher inventories look likely to keep prices pegged back. Its also to be seen if any increase in demand is temporary as well. What is for sure is that any further escalation of the US trade war is likely to cause prices to swing perhaps in a direction that’s not at the moment obvious. Coconut oil has been weaker on the back of weaker edible oils in general hovering under the $900. But with typhoon season running now through till early December that could change.

Desiccated coconut in reality could be lower with edible oils trading so low. But staff shortages in the Philippines coupled with strong demand is stopping prices from falling. Neither of these factors are likely to ease anytime soon. Sales remain high with most Philippine shippers sold heavily through till the end of the year. There is plenty of supply from Indonesia which may eventually weaken the Philippine price but certainly not yet. Sales have dropped off at the moment during the holiday period but there is still some business being done at the current levels as well.

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