Palm oil could be in for bumpy week

Tomorrow will see the EU vote on draft amendments relating to Biofuels and Palm Oil. This could be an early signal this year that the EU wishes to push forward with a range of laws designed to curb use of Palm oil that is not produced from a sustainable source. This also comes as Malaysia has suspended export tax in Palm oil. This move designed to help ease the large stockpiles of crude oil in the country. Will higher exports of Palm oil in the first quarter help to push prices lower? Coconut oil continues to hover around the $1400 mark as well tracking these other edible oils. However with Mayon volcano near Legazpi currently rumbling away threatening to erupt prices could be in for some upheaval.

Desiccated prices have begun the year slightly weaker then the end of 2017 but this is likely due to the first quarter always being quieter then the last quarter of the year. But with heavy sales already through till June for the Philippines any weakening is likely to be short lived. Will the Mayon volcano rumbling away cause issues for this year? Some buyers are already questioning any impact this volcano might have on crops this year. We don’t know what impact it will have so will all watch and wait hoping for the best.

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