Palm Oil higher as crude oil edges up

Crude oil has been slowly edging up for the last couple of months. So whilst Palm crops have slowly been recovering so edible oil prices have been put under more pressure because of this slow increase. Will continued recovery in Palm Oil crops lead to lowers prices or will this just lead to prices remaining level? Coconut oil prices have been edging higher with crude oil over the last few weeks making back ground it lost towards the end of the summer. Indonesia and Sri Lanka have both seen lower coconut oil production recently but will this recover in the first quarter of next year? And again will higher crude oil prices spoil any hope of lower prices.

Desiccated coconut prices have actually been very stable even with edible oils being little unstable. Sri Lankan high prices have meant demand has been pushed over to the Philippines for some clients. Add in Indonesia shipping some 5-6 weeks behind schedule and you can see why the Philippines is sold out through till March 2018 for some grades. What stock that is available is achieving some pretty high premiums.

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