Is a run on Palm oil now more likely?

Some traders are wondering could we be about to see a run on edible oils. Several factors point this way as some crops are lower then expected and there is increased demand as a result. July crops figures for Malaysian palm oil were not as high as expected. India is likely to have greater demand for imported edible oils as poor weather conditions there hamper local crops for Soybeans. Cooler US weather has also raised concerns about crop yields there as well. And tensions in the Gulf might tighten crude oil supply for some time to come. We might just see then more of a run on edible oils as all these factors take hold. Coconut oil is hovering around the $700 mark but any major increase would be a strong indication that we are moving away from the current market low. Certainly at the moment there is far more of an upside then any down with all the current information.

Desiccated coconut continues for now with oversupply holding the market back. But already there have been signs of slower production from Indonesia and a small price increase as well. In turn Philippine prices have levelled to just above Indonesian which is starting to draw in more demand. But some Indonesian shippers are starting to run a little late which is worrying buyers about defaults if the market moves up too much. Strong buying is now already being reported for Q1 and Q2 2020.