Strong Oils

Yesterday we saw Palm oil prices climb on the back of India dropping import duty to reduce prices for Hindu festival season. This coupled with recent comments from shippers in Malaysia about shortfalls in 2017 crops has only added further strength to the market. In fact futures were trading at a 5 month high. Soya prices did though fall as recent poor weather in the US has improved. Coconut oil has been hovering around the $1500 as weather remains good in the Philippines for this time of the year. Of interest is a recent EU wide alert about a shipment of Sri Lankan VCO heavily contaminated with hydrocarbons. Port Health Authorities across Europe will no doubt be running more inspections.

Desiccated has seen strong sales of late. Most shippers in the Philippines are sold out for Oct/Nov positions with just the shorter month of December to go. Also prices in Sri Lanka and Indonesia have also been rising as we enter peak season. With still a large number of enquiries for nearby shipments and limited availability prices look set to remain firm.