Trade wars and weather make for volatile palm and coconut oil market

Europe is gripped by one of the warmest summers on record which will sway the edible oil market as European crops look likely to have much lower yields. The current escalating US China trade war looks also likely to impact prices in a negative way as well. Will shortages in Europe mean that any current over supply in both Soya Oil and Palm Oil get soaked up? We have seen Palm oil gain last week and this may continue certainly if stocks in Asia fall with month end report which are due this week. Coconut oil has risen slightly as its tracked other edible oils moving above the $900 barrier again. If other edible oils move up even further then the $1000 barrier is surely to be tested. Weather though in Philippine remains good so prices should remain stable.

Desiccated has very much been a tale of two qualities lately. With the higher quality manufacturers seeing prices flat as demand remains high caused by numerous products issues around the world. Buyers are keen to secure desiccated coconut that’s identity and quality can be guaranteed. The lower quality market though has seen prices slip even further as more business goes to the quality end of the market leaving quite a bit of oversupply. Stable or rising oils prices though as likely to stop prices slipping any further.

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