Palm & Veg Report, June 2019

It has felt unnervingly quiet over the last two or three weeks but we do expect or should we say ‘hope’ that activity will resume now that we are nearing the end of the public holiday season as it has been incredibly hard to build any sort of momentum recently. The CPP markets out of the AG firmed up during the second half of last month but globally CPP markets remain rather subdued at the moment. The Pacific basket is currently averaging around US$/PD 14,000 compared to US$/PD 9,500 in the Atlantic, meaning there is little appetite to position ships from the Fareast to the West. Crude oil prices have slumped 8% over the last month, partly because US stockpile levels fell less than expected but also because of raised fears about a slowdown in the global economy.

When you accumulate the understanding to know why pizza is made round, is placed in a square box and is eaten in triangles you might be able to work out why suddenly hundreds of thousands of tonnes of used cooking oil (UCO) is being shipped around the world every month. Sceptics are starting to wonder if this is recovered oil or just regular vegetable oils packaged to look like UCO. When big subsidies are involved shady things can take place just like they did during the good old days of ‘splash and dash!’

James Woolfson