Palm Oil market, Salmonella and Coconut!

Quick update ahead of the long holiday weekend here in the UK. Palm oil continues to run weaker as crops improve. The question is how much further down can it go before hits the bottom. Its already looking pretty cheap so it will be interesting to see if it can go much lower. Coconut oil has tracked down to just over the $1100 mark and again this is looking pretty cheap with high demand. With no major weather issues yet this year it will eb interesting to see how much lower the edible oil markets will go.

With big product recalls of desiccated coconut products in the US the market for desiccated remains at odds with the edible oil market. Recalls for frozen shredded coconut from Vietnam at the beginning of the year and more recent recall of Sri Lankan Coconut in the last two weeks has pushed further demand onto the Philippines. US buyers are looking to source more from the Philippines as the fall out continues. For now prices are not falling as fast as edible oil prices and this looks set to continue.

 

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