Complex oil market continues

OK so the edible oil market remain’s difficult to predict direction wise. The Malaysian government have delayed the B10 Biodiesel blend due to current high price of Palm oil and continued low price of crude oil. But still its unclear if we will see Palm oil crops decline greatly in 2017. Although Government agencies are talking about lower crops already which could tighten supply. The edible oil market did rise on the back of Donald Trump’s victory in America but this was more to do with weaker currencies then any sales or demand shift. Its too early to tell if the new American administration will push through with pledges about crude oil and shale gas. Coconut oil has been slightly higher also driven by those currency variations but underneath there are shortages in coconut oil which can be seen in the lower year to date exports then last year same time. Also the expected total year export figures are still predicted to be down on 2015.

Desiccated price’s had been weaker up until the election driven by good currency and what was hoped an improving crop situation. However now with currency running against the markets and figures showing still lower coconut crops prices have been rebounding. There is also a fear of what will happen with US-Filipino relations in light of the election. Uncertainty is at the moment pushing prices higher although stock shortages in Europe are also helping!

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