14 August 2002

El Nino effects on vegetable oil prices

El Nino, the Pacific Ocean stream, is likely to hit the Philippines’ coconut trees, bringing the yield down by about 25 to 50%. As a result, the coconut production, which was planned for 2002 at 1,9-2,3 million tonnes, is to be re-defined due to the dryness conditions caused by El Nino. Drier-than-average conditions have also been observed over Indonesia during last month. Should El Nino effects be confirmed, prices for vegetable oils may therefore increase sharply with a subsequent possible impact on fatty acid and glycerine prices.

Source: oleoline.com vom 2002-08-12.

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