Where to next for Palm Oil and Coconut?

Its been a bumpy few weeks for edible oils prices in general. Palm oil has been weaker during 2018 to date as crops were better and demand has been stable. Add in weaker Soya oil prices with bumper crops once more predicted for the US. But recent slightly strengthening of crude oil has helped to firm up prices a little. Now that we head to the mid point of the year people are looking to the next period. Will crude oil continue to climb is a question most are asking. But with predictions that Palm oil crops will dip in second half of the year then prices may rally soon. Coconut oil has been following the rest of the edible oil as crops continue to remain good. But what about the second half of the year and typhoon season once more? Buyers are wondering have we seen the low point for the year or is there more weakness before prices rally? Its a tough call and one buyers are keen not to get wrong.

Desiccated demand has been difficult to predict over the last few weeks. Salmonella issues in America have turned buyers there to the premium producers as they are concerned over some of the cheaper producers. Its meant a very confused picture with some producers charging a premium and selling out whilst others have struggled for sales at much lower prices. We probably have one of the largest gaps at the moment between low quality cheap coconut and premium high quality that we have seen for some time. But with shippers now sold out till the second half of the year its a situation that’s unlikely to change soon