Palm oil and Crude oil a complex market to say the least

So Palm oil has been weaker this week on the back of data showing that slight fall in exports and continued news of better crops. However as we end the week Palm oil has strengthen slightly. Crude oil prices have started to rise slightly which is now pushing over into edible oils as well. This coupled with wetter weather in Canada which is effecting their Soya and Canola has helped to push prices up. China has also been buying up more Soya recently which has shortened those positions. In the US Soya prices have also risen driven by all these market factors. Its too early yet to see if this rise in edible oils will spill over into coconut oil but its likely that we will see prices rise on the markets today. How much will now depend on crude continuing to rise and continued poor weather in North America.

Desiccated prices have been weaker of late however with continued slow rebound of crops and strong demand prices are not expected to drift much further down if at all. In fact with some Philippine shippers are still struggling to stay on shipment targets and with Indonesia shippers also behind, things could be building. In fact one of the larger Indonesian coconut milk shippers has withdrawn from the market as they struggle for supply of raw nuts. Whilst prices may not jump too quickly it would not take much to push them up right now!