Weaker Palm oil caused by currency and good supply

Palm oil has now started to rebound slightly after trading at its lowest level for three months. Good supply along with only a fractional increase in demand has helped to push prices lower in the last couple of weeks. This in turn has also helped to push down prices for coconut oil as well. But coconut oil prices have also dropped even further as Sri Lanka have dropped their levy on imported coconut oil. This has been enough to see coconut oil fall back from the highest level its been at for over 2 years. Buyers are now questioning just how low can coconut oil go bearing in mind that Philippines crops are not expected to recover from Christmas Day typhoon till June or July time?

Desiccated prices have edge up higher driven by record high levels of coconut oil price. But with coconut oil dropping back somewhat its likely that the peak for desiccated may ease off a little in the coming weeks. But still there is strong demand out there and recent Salmonella contamination in low quality coconut only helps to keep prices firmer for those quality manufacturers.

Let's go back to market news...