Firmer

A combination of factors seem to be pushing edible oils higher at the moment. Last week US Soya prices moved up as concerns over bio fuel consumption pushed prices up. In Malaysia this increase of Soya coupled with weaker currency helped to push up Palm Prices. But also Palm prices are moving firmer as dry weather in Asia causes concern amongst traders. Philippine traders in Coconut oil as also warning that current dry very hot weather will effect crops towards the end of the year. At the moment there is no prediction of any runaway market but its hard to see any decrease for now.

Desiccated prices remain stable at the moment as supply remain very good. But could this high level of supply turn into oversupply so weakening prices? Only time can tell but as more facility expansions come on line for new products such as VCO and Coconut Water so prices will come under more pressure. Buyers still want to book until the end of the year but shippers are far more reluctant as concerns over forward edible oils prices hold them back.