Glut

Glut seems to be a popular word at the moment. Talks of a crude oil glut has been the talk of the crude market. Such a glut that in the US the rig count has fallen below 1000 for the first time since 2009. This has added pressure to edible oils which have seen the term glut used for Palm oil recently as bumper stocks are seen in Malaysia and Indonesia. Dorab Mistry is even now predicting a six year low also in Palm oil as well. Coconut oil hovering just over the $1000 level supported by strong local demand and for unrefined virgin coconut oil. But everyone is keeping an eye on that $1000 barrier.

Desiccated continues its weaker trend at the moment as prices fall on weak demand. Actually demand is normally weaker at this time of the year as traders trim stock before summer production lulls so its not unusual. However issues with Russia are effecting Mars production there which is also pushing prices lower as supply issues that have plagued the market for the last 12 months ease. Buyers are pushing back orders as much as possible to try to hold out. The word of warning is when the market turns there is not much stock around!