Globoil conference, analyst’s point to higher Palm and edible oils.

The outlook that came out of the Globoil conference last week was of rising prices due to increased demand and lower crops. The predication is that Palm oil crops in Indonesia will now only reach around 42 million tonnes as opposed to the 45 million that was estimated at the beginning of the year. With Indonesia blending more Palm oil in Biolfuel from January 2020 demand is also expected to pick up. Making the assumption that crude oil will remain fairly stable so its expected that Palm oil prices could rise by as much as 15-20% by March 2020. For now though edible oils are slightly weaker as we are currently in the peak production months for Palm oil. Coconut oil has been closely tracking other edible oils as dry weather from earlier this year has yet to have a major impact on crops.

Desiccated coconut prices have remained stable from quite some time now. But with predictions about edible oil prices rising buyers have been keen to cover quiet far forward. In fact sales through to Q3 2020 are not unusual at the moment. Shippers in Philippines are mostly sold out for 2019 now and its only resellers that are offering. Supply is likely to tighten by the year end if demand keeps up at this rate.