Post Brexit

The current issue with Palm oil and edible oils in general is demand. Whilst we can make relatively good predication about how crops will fair at the moment because of droughts and ‘El Nino’ what’s proving much harder in demand. Now through in Brexit and things get very complicated. The uncertainty that Brexit has created is already impacting on currency markets and stock markets alike both not in a good way. Its too early to tell yet but this will likely see a downturn in demand for June/July for edible oils. How far this demand will dip its the key to see if prices for edible oils can hold firm or if as some predict push them lower. It has to eb said some buyers have bought on Friday in case of major upheaval in prices. Most however want to see if the markets get pushed lower.

Desiccated prices for now remain unchanged along with edible oils. However its likely in the short term demand will dip for all commodities and doubt coconut will escape. For some its an easy aspirational product they can quickly leave behind if they buyer is watching what they spend. Buyers are withdrawn mainly now as they watch and wait for the market.