Volatile oils in general making difficult market

Last weeks signally from President Trump that America would withdraw from Paris agreements has had a very de-stabilising effect on oils markets in general. Add in political instability over Qatar and the market becomes very hard to speculate. Concern that America could soon start increasing oil production and the possibility that OPEC disagreement could also lead to production increases have pushed crude oil price below the $50 a barrel mark. At the moment its these factors which are driving all the edible oils lower. Even with news that demand for Palm oil is up and production lower so pushing stocks in Indonesia lower. Other news about Palm is that sustainable Palm oil production has now hit 21% of world wide production as slowly the market moves to consumer and government demand. Coconut oil has tracked other edible oils lower as production remains good but demand high.

Desiccated prices had firmed up recently as more demand spilled into the market. Its Sri Lanka continued struggle with low raw nuts along with Indonesia also having supply issues has helped to push prices up slightly. With shippers sold out now through till August at the earliest and even then supply limited its unlikely the prices will dip anytime soon either.

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