Tight complex market for Palm Oil means little change for coconut oil

The palm oil price has risen recently mainly on the back of stronger Soya prices in the US. In turn Soya has been higher as fears over US and North Korea impact Crude oil prices and Soya prices as US and China relationships cool. Today also marks the launch of a new ‘Palm Oil Free’ certification in the UK and Australia as a new initiative for organisations looking to underline the fact there products don’t use Palm oil of any type. Will Palm oil prices drift lower as crops continue to improve or will demand pick up as we head into peak season. Coconut oil prices have been steady lately and considering the general market weakness this is a concern. As we enter typhoon season the market could be more susceptible to bigger prices increases if the weather is poor.

Desiccated prices have been drifting weaker as the stable oil has kept the market quiet. But now with Sri Lanka experiencing major shortages of both crops along with manpower so prices have started to rise quickly. This is leading to major shortages of fancy grades such a chips with Philippine sellers talking about positions sold through to December. September and October desiccated positions as pretty much sold out and November already selling heavily. Now is not the time to be short nearby.