Weaker oil

News out today that Palm oil stocks in Indonesia are to hit records high have done little to stabilize the market. Coupled with predication’s that crops could be set for record levels this year have all weakened an already low market. Just how much further can prices fall is not known but its showing no sign of stopping yet. But before the doom sets in one point to consider as the edible oil markets hit lows farmers switch to more profitable crops. Now concern is that if farmers switch and then crude oil starts to turn up we could see prices hit some big highs. This is more a medium turn predication but one thats on some traders minds because investors love a low market which can make that turn more pronounced.

Desiccated continues to track edible oils prices lower as supplies of raw nuts improve all the time. Just how long or low will prices head are unknown yet but with coconut oil nearing the $1000 for RDB oil some believe that prices cannot fall too much further. Coconut remains popular and with VCO sales growing greatly its thought that prices have some strong support along the way.

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