Market Update 21st October 2024
October 21, 2024
Price Movements in the International Coconut Market Coconut oil in Rotterdam traded at $1,718.50/MT CIF,…
Production of Palm oil has been outstripping demand for a while now with prices dropping ever lower. But at its current level it seems unsustainable for farmers in Indonesia and Malaysia as they struggle to make enough at the current farm gate price. We are already seeing farmers switching crops which ultimately reduce some of the surplus. Its going to take a little time for this to have a big impact and stock are expected to continue to rise in November and maybe December. Also an ‘El Ninrm event looks now almost certain for Asia in the spring which will bring more pressure. Add in that governments in Asia are looking once more at Bio-fuels to rid themselves of surplus’s and to firm up prices. To that end the Philippine government are just announcing that they are raising the Bio-Fuel blending percentage there from 2% to 5%. The market reaction was for coconut oil to jump $100 in a day. Its likely as this new filters through the price of coconut oil will rise even further.
Larger buyers of desiccated coconut have been busy covering 2019 positions of late. The switch in edible oils to more likely to rise then fall has them rushing to cover. Traders in Europe have full warehouses but little bought forward. Indonesian shippers of desiccated have been stating recently that current low levels cannot be maintained and need to rise. Sri Lanka also has seen prices edging up as shippers there try to balance out production costs. Lets face it up is the likely direction.
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October 21, 2024
Price Movements in the International Coconut Market Coconut oil in Rotterdam traded at $1,718.50/MT CIF,…
October 14, 2024
In the week ending October 5, 2024, international prices for coconut oil in Europe dropped…
October 7, 2024
In the week ending September 28, 2024, international coconut oil prices in Europe increased slightly…
September 23, 2024
The price of coconut oil has increased slightly, while prices for palm kernel oil and…
September 16, 2024
Coconut oil prices remain firm despite a lack of trading activity in key markets like…
September 9, 2024
Shipping News Container spot freight rates between Asia and Europe have dropped Rates on the…
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