Strong Palm Oil

Palm oil prices have been strong last week and this week as worries about supply weigh heavily on the market. Also new duty in Malaysia comes into effect on the 1st April so traders are keen to get extra business in before the deadline. Coconut oil price has also been stronger following the Palm Oil market but also following other edible oils such as Soya which been stronger recently. Crude oil prices is also worth a quick mention as price remains firmer even with US rig count up slightly as well.

Desiccated prices have been much firmer as they track coconut oil and are also effected by continued shortages of raw nuts. Buyers have been reluctant to buy hoping prices might fall back quickly but it looks unlikely and if oil continues to rise so its more likely desiccated will actually increase further. Historically its also been pointed out that for Coconut Oil at $1540 desiccated was much higher then it is today.

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