Oversupply keeps Palm, Coconut and other edible oils low

Palm oil has continued to trade weaker as oversupply and low demand continue to figure highly. Add in the fact that we are expecting another record Soya crop in the US and its easy to see why oils continue to run lower. Last week a number of market analysts including Dorab Mistry again stated that its likely that edible oils will continue to trade at these weaker levels for the next six months. With weather expected to remain good through to the end of the year its unlikely we will see any price increases. We have yet to really see any impact from the recent statement from Harvard professor that Coconut Oil is poison. There have been many that have come out against the Professors comments with a leading cardiologist even calling for her to retract her statement or bring Harvard itself into disrepute.

Desiccated prices continue also to be weaker tracking the lower edible oil prices. We do seem to have some over supply at the moment as strong crops figures are coming out from every country this year. Whilst demand does remain good its this oversupply which seems to be pushing prices ever lower.But with edible oils really at the bottom can prices actually fall any further?