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,…
It has been a busy few weeks for Vegetable oils. So, it remains true that vegetable oils, more and more, now track crude oil pricing. Even more mandates for blending biofuels mean that vegetable oils react to wider economic news just like crude oil.
Central banks continuing quantitative tightening is pushing both crude oil and edible oils. Also, recent banking instability has further pushed Palm oil to a seven-month low, even with stocks declining in some countries.
Even Soy has been weaker, with poor weather set to affect crops in some countries. Grain surplus tales from Ukraine are likely to add to market woes. Prices have picked up this week but only slightly.
Coconut oil only tracked slightly weaker in the same period, dragged ever so slightly by the wider market. Coconut oil is a far less suitable biofuel, mainly due to the smaller size of the market, but also its direct uses for a number of products such as cosmetics. But we could see a weaker soy market help coconut oil.
Desiccated coconut manufacture is heavily reliant and manpower and energy; the costs for both are increasing in the Philippines, just like everywhere else. But this week, we are hearing that the raw nut supply has started to become restricted in the Philippines as the prices paid for raw nuts are dropping, as millers lower prices to offset their higher operating costs.
It’s likely farmers could soon switch to more profitable work until the price of raw nuts climbs.
Millers will need to push their buying price to see if that encourages better supply. But they are still faced with climbing production costs, a catch-22 situation.
Next week and the following week will see extended holidays in the Philippines, which will also tighten supply as production stops.
Seems like prices will be higher in the near term and are likely to stay higher now. Shippers are also reporting heavy sales with nearby positions sold out, which will only add to the pressure on pricing. Seems we are likely in for a period now of rising prices and tightening supply, so watch out.
Why not subscribe to receive the latest market news straight to your inbox to clinch the best deal!
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…
If you require technical information about our products, then please login here to access the most up to date information...
Let's take a look at this...