Mixed signals as Palm Oil dips and rallies
July 18, 2017
So Palm oil has been tracking Soya in the last few weeks as Soya has…
Firmer Palm Oil in near term but could edible oil’s turn weaker
Palm oil has been firmer this week on the back of currency , stronger Soya and better demand. However with crops continuing to improve and the likelihood that Soya crops will also be up this year the underlying current could be down. Palm is expected to remain quite volatile whilst it see-saw back and forth with news of better crops but then better demand. But with crude oil prices sliding lower on continued glut in the market then maybe the upside for edible oils is not quite there yet. Coconut oil seems to buck the edible oil trend somewhat at the moment. With lower supply for countries such as Sri Lanka and Indonesia due to poor weather last year and very strong demand its unlikely we will see any weakness soon.
Desiccated prices have been up slightly recently as buyers struggle to get good continuous supply. Strong demand and delays in production have all been helping to push prices even higher. And with seemingly no let up in demand and supply side issues likely to persist through till autumn its more then likely prices will remain firm for most of the summer.
