Demand Slows

Low crude oil prices continue to bite into the edible oil market. As Bio fuels are less popular with low crude prices so demand for edible oils dip as reflected by data for July shipments of Palm oil. Also Soya price have taken a hit this week again on the back of lower demand. Summer though does normally see a dip in edible oil demand/prices as demand naturally dips for energy during warmer period in Europe. Coconut oil continue to hold our above the $1000 level as demand for products like VCO continue to improve.

Still mixed signals on desiccated as strong supply of raw material helps to keep prices lower despite demand actually being higher then normal for this time of the year. Also strong interest shows the buyers do still expect prices to rise eventually.