Stronger oils

Palm oil continued to climb higher last week driven by higher edible oils in general. Also Intertek reported exports increasing during first half of November which could point towards rebounding demand. Add in the continued concern for crops caused by ‘El Nino’ and prices are expected to trend higher through now till the end of the year. Coconut oil has hit the $1100 mark once more as stronger competing oils slowly drives up prices. Also expected declines in coconut oil crops from the Philippines are expected to push prices even higher.

Desiccated prices have been trading firmer in the last week as buyers continue to look for cover during early 2016. Whilst December normally is a quieter trading month there are still some buyers that need more cover for next year. Prices are expected now to rise slowly through till the New Year unless edible oils changes direction.