Complex Palm oil and edibles oils as different factors effect market

So last week Palm oil rose as prices of Soya rose sharply in the US as rumours of new bio-fuel demand hit the market. But this week we have seen reports from SGS and ITS that demand for Palm has fallen slightly during February. Also April will see peak crop production in Malaysia and some are reporting that we may even see these crops in late March. All this has once more pushed prices down during the middle of this week. Like so many times before we have very differing views from different traders. Some are expecting prices to rise during March and April as they believe that demand will climb for Bio Fuels. However others see a sharp drop as bumper crops and slowing demand elsewhere effects the market. For now coconut oil continues to track Palm oil as supply continues to improve after the Christmas day typhoon.

Desiccated prices have been actually quite stable. This has been because demand has remained very strong through out the first quarter of the year. In fact Philippine shippers are reporting stronger demand at this point of the year then last year. Shippers in Indonesia are reporting shortages of medium desiccated as orders outstrip supply. With some Philippine shippers sold now through till early June for some grades its likely that prices will remain buoyant for a while yet.

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