Change?

Last week saw a marked changed in crude oil. A number of talks around the world between oil producing countries with one thing on the agenda to cut production. This was really all the market needed and crude oil prices rose all week to close above the $35 a barrel level. On its own this is not enough to lift Palm oil prices greatly but it may help exports pick up once more. Now with expected further declines in Palm oil supply in the coming months prices are expected to firm up. Coconut oil remains unaffected at the moment as we are only just seeing the first signs of a change in direction for edible oils in general. We will need to see Crude oil prices rise much higher before pressure is put more on edible oils.

Buyers of desiccated in some regions remain surprisingly uncovered. Maybe the hope that low crude oil would push prices lower or that demand would dip during the quieter first quarter. But prices have not dipped but risen and these buyers remain short. Will we now start to see a rapid pick up in buying interest which could trigger a run on price but even more important short supply?