Bounce in Palm oil due to lower crops could continue

Palm oil prices has risen slightly on the news that April crops are down more then expected. There was a belief that the resurgence of Palm oil crops since January would slow down by April which is what we are seeing. However the slow down has been greater than expected which has shown in reduced stock during end of April. Whilst Soya continues to surge both in US and South America this might only keep Palm Oil prices in check. We now watch and wait with Ramadan starting in a couple of weeks will the normal drop off in workers mean an even greater drop in Palm oil stocks. Coconut oil continues track with other edible oils whilst trading within a relatively narrow band. Shipments from the Philippines are still relatively in line with last years if down a little.

Desiccated prices have been up recently on strong demand and continued production issues in the Philippines hampering supply. If edible oils have hit the bottom for now then its likely that prices could firm up as Ramadan hampers production in Indonesia as workers take time off during fasting. With June and July pretty much sold out prices could firm up even further if buying continues!

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