Mixed News

A complex week last week with prices up and down. Early in the week prices moved up slightly on the new that Palm Oil crops were expected to decline even further as El Nino effect took hold. But on Thursday news that Palm oil shipments were down 1-20th January so weakened prices again. Crude oil was very volatile last week with big downward dips as global glut continued with Iraq shipping record amounts in December. Malaysian government has confirmed though it intends to stick with plans for 10% bio fuel blending which has also helped steady the edible oil markets. Coconut oil prices remains little changed as supply remains tight with rising raw nut prices but demand falling slightly.

Desiccated prices are looking ever more likely to increase. Strong demand for the quality end of the market caused by recent issues coupled with lower raw nuts being available are building up the pressure. Only strong competition from the cheaper end of the market and the stable coconut oil prices is stopping the market running away.