Complicated

On Friday we saw edible oils and crude oil rally as news of an OPEC related meeting on Sunday with Saudi Arabia brought the possibility that oil production could be cut. However with no developments crude oil fell back sharply on Monday and only Chinese New Year stopped edible prices falling. The simple truth is that low crude oil prices are keeping edible oil prices from moving up sharply. Coconut oil though is coming under increasing pressure as low crops are effecting supply in the Philippines. There seems little chance of crops outputs changing in the short term so it would seem likely that prices will continue to firm up.

Low nut supply is effecting desiccated production in the Philippines. Shippers are closing out shipments positions for fear of not be able to supply. As a result other origins have been pushing up their prices as demand spills over to the. Its likely that prices will continue to move higher as its well known that some buyer still have second quarter positions to cover.