Palm oil highs

Palm oil has risen to a 2 year high as dry weather is limiting crops and as a result inventories have declined. Figures for March are expected show crops continuing to decline as stock is expected to be down month on month. However seasonal trends should mean that March production does increase slightly. France have voted in their additional palm oil tax as they seek raise revenues on what they see as an environmental poor edible oil. Coconut oil has continued to rise as all the edible oils have been pushed up because of Palm. Coconut oil is above $1400 and is expected to continue to climb following other oils.

Desiccated has moved up sharply as shippers are concerned about rising oil prices. Some shippers continue to be withdrawn and others are late with shipments already. Prices could climb even further if coconut oil moves above the $1500 level. Limited availability for nearby positions is only making the matter worse.