Mixed Signals

Crude oil has been weaker in recent weeks as oversupply weighs down the market. However prices have been creeping up recently as inventories have been lower. But still oversupply will keep prices pegged lower. Palm Oil has failed this year to hit highs that were predicted at the beginning of the year. And whilst predictions are that forward prices will have to rise nearby positions remain much weaker. Coconut oil also seems to be tracking this nearby weakness at the moment. Although husked nut prices are rising at the moment as demand is picking up a little which might push into coconut oil prices.

Desiccated has been firming up recently on freight rates increases and heavy sales for nearby positions. Although good supply is keeping prices from going up too much. Expect prices to increase some more as further freight charges are brought in and as we start to see typhoons in the Philippines.

Let's go back to market news...