Weak markets lead to weak edible oils including Palm and Coconut

In the last two days we have seen weaker stock markets around the globe which has pushed into commodity markets including edible oils. Will continued weaker markets means even lower prices for the rest of this week? Also as the EU discusses the possibility of banning Palm Oil from Biofuels after 2020 could we see a major twist on edible oils in Europe with Rapeseed and other oils price rising greatly as a result! For now though Palm oil continues to weaken as crops bounce back pushing prices down. Coconut oil is also weaker tracking other edible oils lower. Its hovering around the mid $1200 level but could we even see it lower still?

Desiccated prices peaked with news of the the volcano two weeks ago but as have been drifting lower as things seem to have settled down. Now with oil weaker so its putting pressure on desiccated prices now. For now strong sales through till second quarter along with still very low supply from Si Lanka is all that’s keeping prices up. It will be interesting to see how prices fair during February but already have news that Indonesian shippers are knocking their prices as they hunt for business.





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