Complex edible oil market leads to volatile palm oil and coconut oil

OK so you can take your pick of factors effecting the market this week and prices swing up and down. We have seen India impose higher import duties on Palm oil so pushing prices much lower. India remains worlds largest importer of edible oils. But no sooner had prices fallen then news of bio jet fuel along with currency pressure pushed prices back up again. However with lower exports and potentially recovering supply from La Nina could prices dip again. Just to add in next week Crude Oil may also get more support as OPEC could vote to extend output cuts. Coconut oil has edged higher following other edibles oils but for now seems to trade in quite a narrow band.

Desiccated prices had been slightly weaker as coconut oil dipped below the $1500 barrier however with prices back over the $1500 this weakens may be fading. No sign yet that crops in Indonesia are improving or that Sri Lanka prices are dropping from their high levels. Philippine shippers remain heavily sold for the first quarter but with new extra capacity some have yet to fully sell out. So for now pricing seems balanced its more a case of getting hold of supply.