Mixed market for Palm and Coconut Oil

Will Palm Oil crops continue to recover in 2018? February has seen supply dip slightly due to short working month however this should reverse in March. However stocks of Palm Oil have dipped at the end of February on the back of the lower crops. Will Europe’s moves to limit Palm Oil over sustainability issues impact price this year? Both Malaysia and Indonesia are actively looking for new markets although with limited success so far. On the radar is the US new moves to set import tariffs for some commodities? Will President Trump seek to protect US Soya market by blocking other edibles oils such as Palm and Coconut Oil? For now though Palm oil price has been declining for the last few weeks and this has been dragging down coconut oil as well. The question is just how low will edible oil prices sink.

Quality issues continue to play a key part in desiccated pricing. From Coconut Milk thats been adulterated with dairy milk to desiccated contaminated with Salmonella. Large scale buyers are wary as they realise cheaper desiccated coconut from India, Ivory Coast and other origins comes with it big risks. Buyers are looking beyond BRC now for ever more control of raw materials after a succession of food recalls here in the UK and Europe. All this is helping to keep prices for the highest quality suppliers up as they see demand for their products rising.


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