Market Update 16th May 2023

Currently, the edible oil market is following the crude oil market trends. However, the crude oil market is being held back due to economic uncertainty caused by high-interest rates. It remains to be seen if the crude oil market will rebound if interest rates stop increasing during the summer or if rates need to decrease later this year or early next before the crude oil market can improve.

Predictions for the Palm oil crop market in 2023 are mixed. While prices are expected to be lower due to increased supply from some locations, the upcoming El Nino weather pattern may negatively impact crops in other areas. It is uncertain if lower demand due to economic difficulties and better crops will cause prices to drop or if bad weather will reduce supply enough to keep prices high.

The desiccated market is currently quieter than usual, with weaker demand and buyers already well-supplied.

Q3 has seen some larger buyers making purchases, but mid-sized companies are hesitant to enter the market after experiencing losses last year.

High-interest rates will likely continue to impact demand, regardless of weather conditions.