Has the stronger start for Palm and Coconut oil this year come to an end?

Edibles oils have for the most part had a pretty good start to the year. Palm oil has risen solidly since January and so has Soya for the most part. But in the last few days both have been slipping back and some want to know have we already hit the peak. Its likely though speaking to some traders that all we are seeing is a temporary reprieve from the upward trend. Whilst crops for Palm oil have been projected lower during the first quarter we are also seeing a downturn in demand as well. Slowing Euro and US economies are likely slowing down demand as well. We have seen reports of much lower Palm oil inventories from Malaysia however at the moment concern over demand going forward has brought prices down slightly. Also will European continued push to remove Palm oil from Biofuels continue to hamper any further rebound in prices. Coconut oil is trading lower as good supply from all origins continues to keep prices low. Whilst there have been some increases in other edibles oils this has not translated to coconut oil. But with crude oil prices still weak its going to take bigger movement in other edible oils to push up prices.

Desiccated coconut remains for now locked on the bottom really. Even with renewed interested in Vegan diets and plant bases substitutes for milk, cheese and meat all of which use coconut products prices remain unchanged. More buyers are now covering till the end of the year as some shippers start making offers far further out. Enquires are even being made to offer till mid 2020. For now things look set to remain weak for some time yet.