Palm oil hits 5 month high but can edible oils continue up

So palm oil has hit a 5 month high on the back of reduced crop outlook for January and continued climbing soya oil price. Soya itself has been rising as the current China-US truce which has fuelled increased business from China. But Brexit in Europe and the current US government shutdown could all lead to economic slowdown which would impact on demand for both edible and crude oil. Also Europe’s continued push to reduce Palm oil use will impact demand at some point. So edible oils are slowly firming up but its a long slow process. Coconut oil for now remains unaffected by recent increases in Palm and Soya mainly as supply remains very good and stockpiles are high. But with other edibles slowly rising is it just a matter of time?

Desiccated coconut market has been weak for sometime now. Shippers who heavily invested in increasing production capacity during 2017 are now finding that sales towards the end of 2018 have taken a dip. Reading news reports in the US press here there is a belief that on the back of negative press usage volumes in 2018 slipped compared to previous year. However in Europe usage slipped more because of the high prices at the end of 2017 and first half 2018 which pushed demand down. Whats for sure at the moment there are a number of industrial buyers who have yet to cover bulk business for 2019 as they wait for best possible price. With edible oils up will they now be tempted into the market?

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