Thursday

Well Thursday looks set to be an important day. We will know then if the US Federal Reserve will increase interest rate for the first time in a decade. Opinion is split which way they will go but an upwards movement is likely to weaken crude oil prices further as it will signal a further slow down in demand. Crude oil prices have been weaker slightly but with oil production declining its looking flat at the moment. Palm oil production is also down slightly which has helped to stabilize prices even with demand low and stocks high. Coconut oil though has been climbing slightly as husked nut supply is low with prices rising.

Desiccated prices have been firmer recently as buyers pick up shorts because of the increase on coconut oil prices. Most are wondering is the current increase in husk nuts prices caused by the dry weather during the first half of the year? If so then in reality prices will most likely rise further still as supply and crops are reduced.