Weaker Palm oil as higher crops push prices lower

As we reach the middle of the year so we look to see whats happening with Palm oil crops. And yes as predicted crops do seem to be steadily improving. In fact some are now expecting a slow and steady improvement through now till the end of the year. With demand still strong prices are expected to decline but not greatly trading between a narrow-ish band. Obviously other factors like growing calls for more sustainable palm oil could push prices in either direction. Coconut has had a tough couple of weeks. American Heart Association statement clarifying that because coconut oil is high saturated fat its very unhealthy. And the basis for this reasoning? Well actually no new research in fact its just a review of previous research that agrees with the theory that Saturated fat is very bad. But as one commentator said interesting that this review ignores any research that disagrees with this theory. It does not even really acknowledge some recent studies into MCT diets and weight loss or research into Alzheimer’s. The reality is as always everything in moderation and beware organisations making bold statements they are rarely all they seem.

Desiccated remains very tight as demand outstrips supply for all the nearby positions. July and August are sold our for a number of the large Philippine shippers with supply tight from Indonesia. Only Sri Lanka prices are slowly dipping down from the ridiculous highs caused by low crops and Ramadan. However Sri Lanka still remains the highest by far!