Palm Oil hits 3 year high all other edibles oil up

Palm oil and other edible oils are all up this week. There is a tightness at the moment between edible oil production and demand which is the closest its been for some time. As a result Palm oil has hit 3 year highs as concerns grow about slow down in crops. Palm oil is now expected to be trading higher through till end Q1 2020. Although nobody is betting just how high it will go. Other edible oils such as Soya and Coconut oil have been dragged higher. Coconut oil is up $200 in 2 weeks. All of a sudden the $1000 barrier looks achievable before Christmas.

The sudden rise in oils has caught desiccated shippers out slightly. Some have been much quicker to react putting up prices by as much as $110/150 per mt. But prices are on the up and some buyers have been caught out as well with short positions for Q1 2020. With December being a short month its likely we will see shortages on the spot market now through till end January. Just how high desiccated price will now rise depends on how long the run on edible oil continues. But some are predicting that prices could rise another $250 yet.

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