Ups and downs

Mixed news on oils at the moment. Higher then expected stocks in Malaysia at the end of September pushed the market lower. Traders are worried that this points to a dip in demand greater then expected. However this is being balanced out by a report saying the crops are not improving as much as expected after El Nino. Whilst recent news has been about tighter Palm oil supplies if demand is lower then expected then this will balance out. But could recent action by Green Peace against Palm oil companies in Europe also be effecting demand? Coconut oil had drifted lower with Palm oil but has risen back again fairly sharply as demand remains strong.

Desiccated prices from the Philippines have been stable for some time now as oil trades between a fairly narrow band. However other origins have been pushing up as Philippines shippers are sold out for October and November positions. Strong demand for spot material has also left a shortage with traders at the moment which is also adding price pressures.