Weaker Exports

Whilst currency variations do there best to support Palm Oil prices the real issue behind is the continued drop in demand. A bigger downturn then expected of Palm oil exports during April have helped to push the market even weaker. There is a general concern that economic issues in China which are hurting economic growth along with continued low crude oils could be slowing the world economy. The lower exports of edible oils could be the early signs of this slow down. Coconut oil is tracking Palm oil lower and now the Philippine elections are over it may drift lower still.

Desiccated prices are stable at the moment as demand is slow but present. However shippers do have supply available even for relative nearby positions which would indicate that extra capacity is currently weighing down the market slightly. There are plenty of forward sales its really just with extra capacity a number of shippers are actively seeking more buyers then this time last year. Will we see some of the smaller shippers from Sri Lanka, Indonesia or Vietnam closing.

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