Firmer oils

Palm oil prices have rallied a little last week as continued worries over lowering production hit the market. Adverse weather at the moment seem to be causing issues but then traders are worried this is the start of the El Niño effect. Looking at coconut oil prices have held above the $1100 level and for now it looks like prices will firm up a little in the short run.

Desiccated prices have remained stable now for last couple of weeks. The apparent floor in coconut oil seems to be underpinning prices. Shippers are getting enquiries through till early 2016 but are asking for a heavy premium to book so far forward.