Weak Palm oil and trade disputes push edible oils ever lower

Palm oil has been pushed even lower this week as rising output puts paid to any chance of a pickup in the market. Add in the worry about European authorities pushing through Palm oil bans not just for biofuels but also food consumption. This has helped to push palm even lower and there has been no support from Soya as prices at the early part of the week hit a 10 year low. The current trade dispute between US and China has slewed the market but also oversupply is helping to keep prices lower. By mid week though there was some good news for Soya with Argentina talking about raising exports taxes and poor weather in the US all helping to lift the market slightly. Coconut oil prices have remained pinned to the bottom because of the weak edible oil market. Last weeks typhoon in the Philippine may have been a warning but for now prices remain rock bottom.

Desiccated prices remain weak on the back of edible oil prices. Philippine shippers are still doing business at much higher price levels then Indonesia but the volumes are down on this time last year. It takes a while for end users to switch origins but some are due to the big difference. Others that need that reassurance of best quality and shipment are though not switching. Its unlikely though we will see much of reduction in Philippine prices as heavy overheads stop prices falling much further. Instead a concentrated on fancy grades and ultimately reduced production most likely await.