Supply glut continues

Supply glut continues to weight both crude and edible oil markets. More concerning though is the sluggish demand which could be a forewarning of global slowdown for next year. On Monday the Chair of the Malaysian Palm Oil Council predicted that Palm will stay low now till the year end. But by then El Nino should start to impact on supply so we should start to see prices start to level out at least.

Desiccated has been weaker recently as supply remains very good and tales of some shippers selling at low prices due to high stock positions. But other shippers have stronger sales for Sept and Oct so keeping prices pegged for now at least. BRC 7 with its greater emphasis on supply chain awareness is also helping stronger sales in the Philippines due to their expertise with quality documentation.