Crude oil turning

Could the comments from Goldman Sachs that crude oil production might have turned into deficit signal the market has not only bottomed out but will now start to rise? Palm oil exports have risen in May above the April figures which is also helping to push some of the edibles. But coconut oil has dipped as supplies get better nearby as post Philippine elections push up production slightly. However its likely that stronger Palm oil and Soya prices will support the coconut oil price from falling too low. Also of interest is Sri Lanka increasing the duty on imported edible oils although it remains to be seen what impact that will have on prices.

Desiccated prices have been trading evenly in the last week as steady business has been traded. We may yet see some slight increases in prices from Sri Lanka because of the new import tax on edible oils. Supply from Indonesia remains tight as droughts hampers production there.

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