Mixed Market

Palm oil stocks in Malaysia at the end of August have fallen to a 5 year low. So normally you would expect prices to climb from this news? However with still more news about larger then expected Soya crops in the US along with a slightly weaker crude oil price so prices are actually slightly weaker. Also demand for Palm oil for first week in September is down as well which has also added to prices slightly weaker. But what these figures show is the declining crops for Palm Oil which is expected to continue. If crude oil were to rise or soya crops start to fall then edible oil could come under a great deal of pressure. Coconut oil has been quiet as it tracks other edible oils but we are starting to enter the biggest part of the typhoon season so a lot are watching weather reports.

Desiccated prices have been slightly higher recently as a combination of autumn buying and reduced supply from most origins caused by drier hotter weather earlier this year. This shortage in the Philippines and Indonesia is not expected to improve anytime soon. We can expect maybe even further increases in price as we go deeper into typhoon season.

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