Bullish Trends To Help Coconut Oil Prices

Bullish indications that include fresh demand from the biofuel sector and new oleochemical facilities could further boost export prices of Philippine coconut oil beyond 2006, an industry executive said Friday.

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According to Danilo Coronacion, chief executive officer of CIIF Oil Mills Group, high crude oil prices will increase demand for coconut methyl ester or CME, a biodiesel derived from coconut oil.

In addition to Japan – which is already securing CME from the Philippines – South Korea and the E.U. have also expressed interest in procuring biofuel from the country, he said.

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