Return from holidays and what next for Palm and Coconut oils?

The start of September normally sees traders return from their summer holidays looking at their positions for the end of the year and what next year might bring. Palm oil remains as complex with Europe and other nations looking to the whole sustainability issue and how best to deal with the situation. Palm oil itself remains volatile with demand appearing to increase as Europe and China consume more but crops also could now improve further this year. Also more countries that are big edible oil importers such as China and India continue to push ahead with more home grown crops. Could more crops elsewhere balance out extra demand?

Desiccated prices have been rising rapidly recently as Sri Lanka prices have hit astronomical levels. Prices in Sri Lanka have hit over $3200 per MT which has pushed up prices in Indonesia and Philippines as demand spill’s over to these other origins. With Typhoon season reaching its peak over the next 3 months prices may have much further to go!

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