Edible oils edge weaker as both Palm and Soya have increased output

Palm oil output surged in March with supply outstripping demand pushing the price to a six month low. This even with expected increase in demand during April and May ahead of Ramadan. But demand was higher in March then previous month so the question is can supply continue to outstrip the demand if it picks up even further? Coconut oil has been tracking other edibles lower especially palm kernel oil. But Palm Kernel oil has been moving lower as improvements in technology help to improve yields. Coconut oil may still dip further as it tracks the general market.

Desiccated prices have been also edging slightly lower as the weakness in the oil market spills over. However demand for some origins remains strong keep prices higher. Also lack of supply of medium coconut has meant some significant premiums can be seen over Fine grade. This week though should be much quieter as buyers everywhere take advantage of the short week for extra holidays.

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