Weak crude

Edibles oils are caught somewhat at the moment. Falling crude oil prices have hit demand for bio fuels heavily so taken away a major supporting factor for prices. But Palm oil the world’s largest edible oil production fell in December by 22% caused by recent heavy rains. With reserves also falling by 12% and production is expected to be weak through till March. Its thought that only really this weak crude oil is stopping prices running away.

Coconut oil continues to hover at the $1200 level as traders watch closely what’s happening with Palm. Although good production for coconut oil is likely to keep prices pegged lower. Prices for desiccated remain very widely spread at the moment. With some origins prices weaker since the beginning of the year as they hunt out demand whilst others such as Philippines holding onto prices because of the support from new products like VCO. Traders are more and more interested in VCO not least because of its relative stable pricing. But for now VCO is mainly retail only but it cross over into commercial products this year?

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