Low crude for longer

First predication’s put this years low crude prices coming to an end by the end of the year then rising steadily. However over the weekend several major news sources have followed up on weak oil furtures to predict that crude oil might stay low for several years to come! A combination of low crude prices and a continued glut is helping to push Palm oil even lower. In fact Dorab Mistry is pointing to a 6 year low for Palm by September. Coconut oil continues to hold steady compared to its nearest rival PKO caused in some way by lower stock levels. Will this continue as we enter typhoon season?

Desiccated prices have remained level at the moment as a well defined price split between the different origin/qualities has appeared. The Philippines has both strong sales and inquiries through till end 1st quarter 2016 so another round of weaker prices seems unlikely at the moment.

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