Conference round up

This weeks Palm oil conference saw some consensus between all the key speakers in that all expect price for Palm Oil to now continue to rise till the summer. The lowest estimate was for Palm to hit RM2750 but Dorab Mistry was predicting a price above RM3000 by the summer. Again there was consensus that if Crude Oil hit the $40 a barrel mark then it was likely that Palm would be nearer the top side of predictions. One of the strong reasons behind these predictions is the continued fall in Palm oil production and expectation that it will continue to fall till Mid-late 2016. Whilst there was no agreement on just where production of Palm will be this year most did conclude a fall is likely overall. Coconut oil has responded by tracking up with Palm oil to above the $1300 mark this week.

Desiccated prices has been tracking much higher as low raw nut supply and high coconut oil prices have pushed market higher. Whilst we have conflicting stories it appears some shippers have withdrawn as they wait to see what new price buyers are prepared to pay. There is always a drag though as some traders fail to realize the market has moved up so keep offering at lower prices.