Lower Palm oil but demand is rising

Palm oil futures fell on Friday to a 5 month low on lower Soya prices. In fact this week its expected that US Department of Agriculture will announce the largest ever crop of Soya which has pushed all edible oils lower. This has actually come at a time when Palm oil exports were up and so prices were also being driven up. A 6% plus increase in those exports along with expected higher exports in April for Ramadan might mean that Palm oil prices level out quickly. Coconut oil tracked Palm oil higher but then has taken a dip as well. Supply though for coconut oil remains good and getting better. Its likely that prices will stay on the weaker side for now.

Desiccated prices have also been weaker slightly as supply remains good. However strong sales has meant some grades are in short supply so products like Medium coconut are commanding higher prices. With shippers sold out for May and June already its likely that whilst prices are on the weaker side there is little chance of any big fall in prices.