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Ups and downs

Date: 12 Mar 2013
Sorry no news last week but I was moving house. There has been lots of short term information recently but very little about the longer term picture for the oil market. We know that on Friday the US released information that Soya stocks were higher but then Palm Stocks fell during February in information released from Malaysia. So prices have been up and down on this information. Longer term though there is a worry that stagnant demand will push prices lower and better Soya production along with good Palm Oil could depress prices for the rest of the year. Its fair to say that longer term predictions are at best highly inaccurate at the moment as direction for the world and regional economies seems so hard to pin down. Desiccated has been higher recently as production dips in Sri Lanka pushing up prices both in Indonesia and the Philippines. Vietnam have lost a little bit of interest in producing coconut since last year because of the low prices. However they may start to produce more now that prices have risen slightly. Prices should stay firm for the time being until Sri Lanka starts producing more.

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