Palm Oil Vs Soya

Crude oil prices have risen on the back of drop in US stockpiles. This could have a knock on effect into edible oil prices over the coming week. Palm oil and Soya seem to be finely balanced at the moment. Whilst Palm oil production is expected to drop so Soya production is expected to increase. China has also set about an ambitious planting program for Soya as they look to shake off foreign imports. Coconut oil is holding firm with the rest of the edible oil market at the moment. However some are predicting a decline in production in both Philippines and Indonesia caused by droughts at the end of 2015 and early 2016.

A steady oil market is also keeping the desiccated market steady as well. But there is strong demand out there at the moment with Philippine shippers fully sold for October already. This is the point will drier weather early this year start ti impact upon supply? We have already seen in the South of the Philippines shortages of raw nuts pushing prices up slightly there.