The question about connection with edible oil and crude oil is always being asked. Roughly worldwide edible oil production is about 150 million tonne per annum. But crude oil is about 12.2 millions tonnes per day! So that’s 150 vs 4450. Crude oil prices are effected by economic growth or at least its perception which can drive prices higher or at the moment lower because of over supply and lower demand leading to a glut. The purpose of this is to show the market sizes and some of the factors that influence them. But also to point out that Palm oil along with other edible oils can as easy disconnected from oil if say you have ‘El Nino’. Which brings us to today with crude oil seeming relatively stable at the moment so traders are looking to anything that could effect Palm oil prices which ‘El Nino’ normally pushes up prices. Coconut oil is also moving upwards as the dry weather from earlier this year slowly starts to impact crops.

Desiccated interest is strong at the moment as buyers are worried about the slowly increasing oil prices. Increases in coconut oil has yet to spill over too much into desiccated but some feel its only a matter of time before prices start to move higher. Final comment would be that so far no Typhoons during the 2nd half of the year? October and November though are the prime months.

Let's go back to market news...