19 February 2014 16:22 [Source: ICIS news]
LONDON (ICIS)--Rising palm feedstock costs have led to expectations of higher palm-based fatty acids prices leading into the second quarter, sources said on Wednesday.
Palm kernel oil prices increased by $137.68/tonne over the course of the week, trading at $1,327.22/tonne DEL (delivered) south Malaysia at the close of business on 19 February.
One European producer said it is currently difficult to make accurate offers in the spot market, with palm feedstock prices increasing week-on-week.
The producer said it had conducted some spot deals with its customers, selling palm oleic acid at around €1,280/tonne FD (free delivered) NWE (northwest Europe), and palm stearic acid at €950-980/tonne FD NWE.
“I’m receiving less interest from its buyers for palm oleic grades, because of the competitive tallow oleic offers,” the producer added.
Both tallow-based grades have remained at stable levels, owing to the balanced conditions in the raw tallow feedstock market.
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