Palm oil could be higher till end of the year.

One of the European trading banks has revised its outlook for Palm Oil for the rest of this year despite predictions that oil will start to weaken. The medium term prediction is still that rising crops and lower demand will push prices lower however shorter term higher Soya prices have for now pushed up the market. Coconut oil has been weakening as weather in the Philippines has remained good along with the predictions of weaker Palm oil. Continued good weather and lower Palm is likely to add more downward pressure.

Desiccated prices have been surprisingly stable at the moment except for Sri Lanka. Sri Lanka prices keep setting new records with low crops and production issues pushing prices up. Demand has spilled over with Philippine pretty much sold out till the end of the year. Will weakening oil prices finally take the heat out of the market? Sadly its likely with demand running so how to have little impact for a while yet.

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