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NEWS ADMIN

Mahamad Rodzi Abdul Ghani

DATE

27/09/2004

NEWS PROVIDER

Mahamad Rodzi Abdul Ghani

NEWS SOURCE

Dow Jones

CATEGORY

HEADLINE

World Coconut Oil: Prices Unch To Lower On Higher
24/09/04 MANILA (Dow Jones)--World coconut oil prices are unchanged toslightly lower this week following an improvement in copra supply andbearish influence from the soy oil market, traders said.Traders said that bearish fundamentals in the soy oil market, courtesyof a bumper soybean crop in the U.S., is exerting pressure on the coconutoil market.One trader said that improvement in copra deliveries as manifested byhigher exports this September is also putting pressure on prices.Philippine exports of coconut oil this month are projected to reach112,000 metric tons, substantially higher from the previous month'sexports of only 75,000 tons."It (export volume) speaks of improvement in our copra supplysituation, which is why there's a slight pressure on prices," one tradersaid.Traders said that bearish fundamentals in the coconut oil market werecushioned by strong domestic demand for palm kernel oil in Malaysia.Manila-based traders quoted coconut oil for August/September shipmentat $675 a metric ton, CIF basis, Rotterdam, unchanged from prices quoted aweek ago.The September/October shipment was quoted at $662.50/ton whileOctober/November delivery was offered at $655/ton. These prices areslightly lower from prices offered last week.Traders said prices are likely to edge lower next week on continuingpressure from the soy oil market.The Philippines is the world's biggest shipper of coconut oil. Exportsthis year are expected to reach 1.02 million tons, slightly lower comparedto 1.2 million tons in 2003.