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NEWS ADMIN

Mahamad Rodzi Abdul Ghani

DATE

01/06/2004

NEWS PROVIDER

Mahamad Rodzi Abdul Ghani

NEWS SOURCE

DJ

CATEGORY

HEADLINE

World Coconut Oil: Prices Fall On Bearish Factors
Manila, May 28 (Dow Jones) - World coconut oil prices continued to fallthis week, in line with bearish sentiment in vegetable oil markets.Traders said the market was generally quiet this week as most buyersremained on the sidelines, anticipating lower prices.Manila-based traders quoted coconut oil for July delivery at $640 ametric ton, FOB, down $10-$15/ton from prices quoted a week ago.Despite limited supply of copra, the dried coconut meat from which theoil is extracted, coconut oil prices continue to slide on the bearishinfluence of the soy and palm oil markets, traders said.Prospects of lower soyoil imports by China and increasing palm oilstocks in Malaysia are major bearish factors in the vegetable oil market,traders said."The sentiment (among buyers) is to stay out of the market," oneexporter said.However, the coconut oil market could see a technical correct highernext week as export prices have already fallen substantially, by around$100/ton in the last two weeks, he said.He added a possible increase in demand for palm oil could help easepressure on coconut oil prices.The Philippines is the world's biggest exporter of coconut oil,averaging 1 million tons a year.