Weak Crude

Weak crude oil prices have been impacting on edible oil prices all year but recent declines caused by Chinese stock slumps and world wide glut have pushed price even lower. However Coconut oil for now seems to be holding out against recent falls both in Palm and Soya. But with US reducing its oil capacity because of recent declines the prices the downside could be limited for now.

Desiccated prices have been weakening all year as supply improves and new capacity for products like VCO come online easing the strain on some of the existing mills. But new requirements for BRC 7 and SMETA Ethical audits have been costing both time and money for the first rate mills so keeping their costs up. Crops of raw nuts are expected to decline as earlier hot dry conditions start to impact but have yet to see this.

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