2017 Predictions for edible oils

Last week saw the rather heavily titled ’12th Indonesian Palm Oil Conference and 2017 Price Outlook’ conference take place in Bali. Seldom does everyone agree the outlook for Palm oil and edibles oils going forward and this conference was no different. Although the consensus does appear to show that Palm oil crops are not expected to recover till the end of the year. From here though the predictions differ with some saying Palm oil price will level off in price whilst others say price will continue to climb till the end of the first quarter. Now coconut oil does tend to track Palm oil fairly closely. Coconut oil prices have been higher lately following Palm oil and Soya oil as they move higher. The cause appears to be expected increase in bio fuels blends both in Asia and USA. This coupled with low Palm crops and currency exchange rates have helped to push prices up.

Desiccated prices have rebounded a bit as higher oils have tighten supply. Also its would appear that raw coconut supply in Indonesia is lower as shippers there are late with a number of shipments. This is also increasing demand for the Philippine coconut which means stocks in Europe are very low. It will be early 2017 before supplies start to return to normal.