Coconut oil prices lower in Euro market<\/p>\n
LONDON (Reuters): Coconut oil prices closed sharply lower in
\nactive trading on the European vegetable oil market during
\nWednesday afternoon.<\/p>\n
Prices have fallen a total of $50 to $55 a ton since Indonesia
\nsaid on Tuesday it would not ban the export of coconut oil.<\/p>\n
Speculative buying pushed prices higher on fears that
\nIndonesia would follow up its ban on the export of all grades of
\npalm oil with a similar block on coconut oil.<\/p>\n
\"To a lot of people it would have made more sense to ban
\ncoconut oil than palm oil because Indonesian consumers prefer the
\ntaste of food cooked in coconut oil to palm olein,\" said one
\ntrader.<\/p>\n
\"They could have kept the coconut oil and exported palm oil to
\nbring in dollars,\" the trader added.<\/p>\n
Apart from coconut oil the rest of the market was quiet with
\nmost players reluctant to take fresh positions ahead of the
\nexpected announcement on Thursday by the Indonesian government on
\nthe result of Wednesday's talks with the IMF.<\/p>\n
\"There is a lot speculation about what will be said on
\nThursday and everyone has their own ideas. In fact you would be
\nsafer placing a bet at a casino than trade this market at the
\nmoment,\" said one trader.<\/p>\n
Traders said the market was full of rumors about the lifting
\nof the Indonesian export ban on crude palm oil and its products,
\nbut their counterparts in Indonesia said they could not see the
\nban being lifted before the presidential elections in March.<\/p>\n
\"The Indonesian government will not want the price of cooking
\noil to go up again before the elections, but at the end of the
\nday the IMF is calling the tune and may say the ban has to go,\"
\nsaid one trader.<\/p>\n
Traders added that normally the IMF asks for countries to cut
\nback on spending and increase exports in return for its help.<\/p>\n
\"But we won't know until Thursday what has been agreed between
\nthe IMF and the Indonesian government. It is possible that they
\nhave justified the ban by saying they need it to feed local
\npeople,\" said a trader.<\/p>\n
At the close of business coconut oil sellers were $25 to $30
\ndown on the day after Jan.\/Feb. traded at $560 and $550 a ton,
\nFeb.\/March at $560 and March\/Apr. at $565 and $560 a ton cif.<\/p>\n
Apr.\/May also traded in a switch with May\/June at a $12.50
\nspread.<\/p>\n
Palmkernel oil was $25 down with no buyers in sight.
\nCrude palm oil cif Europe ended the day $2.50 down with products
\n$15 to $7.50 up with no further business reported during the
\nafternoon.<\/p>\n
Among soft oils, soy oil closed 1.50 to 0.25 guilders up after
\nJan. traded at 129 guilders, Feb.\/March at 127.50 and 128 and
\nMay\/July at 119 guilders per 100 kilos fob ex-mill.<\/p>\n
Rape oil ended the day 0.75 to 0.50 guilders higher after
\nFeb.\/Apr. fetched 129 guilders per 100 kilos fob ex-mill.
\nEU sunflower oil closed mixed with ex-tank offers $5 up to $5
\ndown.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/coconut-oil-prices-lower-in-euro-market-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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