Crude oil

At the moment crude oil seems to be driving the direction of the market. Crude oil rallied slightly last week but again issues with China are weighing heavily pushing prices down, In fact some analysts are now even talking about $20 a barrel being possible. So whilst Palm Oil crops are reducing so is the demand for Palm as a Bio Fuel. Some believe that this will only lead to a bigger jump in Palm oil prices later in the year. Coconut oil prices have been rising even with low Palm Oil prices as lower crops have been constricting supply.

Desiccated prices have been rising since the start of the year. Low supply of nuts has been pushing up prices since the end of last year and is continuing now. Today tales of price increases in Indonesia of $100-200 per mt. Only Sri Lanka has reported prices falling but prices there were much higher then other origins anyway.