Weaker Palm?

Despite all the concerns over El Nino and current dry conditions in Asia recent cargo survey shows that Palm oil exports are flat. Now add in rumours that actually crops are improving slightly and you can see why Palm oil continues to edge lower. However stronger Soya prices are helping to keep prices from dropping too low. If exports continue to remain flat then prices may edge even lower although there is expected some bounce back during May. Coconut oil is firming slightly but really on the back of uncertainty caused by current Philippine elections. Although hotter drier weather there is also worrying some traders although any impact would not be seen on production for several months.

Desiccated prices remain stable for now supported by the slightly strengthening coconut oil prices. Shipper who were withdrawn are slowing now making offers all be it higher then before they withdrew. The question really is which direction will the market turn after the current elections in the Philippines.

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