Edibles oil’s such as Palm and Soya flat as market faces up to some of its issues

Palm oil has been trading slightly higher towards the end of last week despite the apparent glut in supply. Its been tracking global Soya and Crude oil prices which have been edging higher. But that glut of supply is likely to hold back the upside. But as Nestle becomes the most recent company to cut ties with suppliers of non-sustainable Palm oil were next on pricing. Nestle have gone one step further then other end users not only banning a number of supply companies but also stating they will use Satellite technology for better identification of non sustainable supply sources. Soya oil is really having a difficult time at the moment. The US has once more record crops but without China as a main client prices are taking a beating in the US. Global prices are up though, as Chinese buyers look to source Soya from other countries such Brazil and Argentina. Coconut oil remains very weak though as supply is also very good. But with prices so low farmers are likely to seek other crops to plant to make up the shortfall on wages so its likely supply will fall.

Desiccated prices have been ruled by oversupply this year as well and this continues. Suppliers lacking in quality systems and third party accreditation’s continue to fight over that limited end of the market so pushing prices ever lower. But quality suppliers have maintained a good base of clients keen to avoid issues. Recently in the UK with Pret-a Manger and a sad case of a allergy death could further stir up the market. Its been suggested that the death was as a result of contaminated coconut milk that contained dairy milk. This could lead to another push ultimately for even better product identity testing. This is not likely to favour those at the lower end of the market.

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