Governments step in.

Firstly Malaysia has stepped in to end the zero tax on Palm oil so from 1st April tax will be levied at 4.5%. Also Indonesian government has announced plans to blend more Palm oil for bio-fuels this year in an attempt to shore up prices by increasing local demand. Could this now signal an end to the recent slide in edible oil prices? But with crude still hovering around the $55 level will any of these make a difference? Coconut oil continues to weaken as crops continue to recover with price hovering just over the $1000 level.

Desiccated prices have been weaker recently as supply has continued to improve. The caution is in the fact that the market has been quiet for a while and weaker prices have some interested. With budgets at the end of 2014 showing prices much higher covering now would be a good move against budget figures. Some are holding out to see just how low that market will go but with Sri Lanka prices heading upwards how long will buyers wait?