Complex

A complicated oil market at the moment. Palm oil is weaker again at the moment being driven down by lower export volumes and the seasonal pickup in crops. Low crude oil also is helping to hold all the edible oils lowers as the glut continues. However a number of analysts still believe that Palm oil prices will move higher into the summer as lower yields caused by the El Nino effect continues to hamper crops. Coconut oil is hovering around the $1550 level on limited trading. But with Philippine Elections in couple of weeks time trading is expected to be quiet at the moment. Those election results could prices in either direction.

Desiccated prices have remained steady for the last week although with very limited interest. Buyers are waiting to see if prices fall back even further if edible oils drift lower. Nearby demand though has been strong with many sold out of May and June. Some larger shippers remain withdrawn for anything further then June due to concerns over market direction.