Palm oil prices have fallen this week on weaker Soya price and higher then expected crop data for February. Traders were expecting Malaysian figures to show declining crops for February yet so far the figures are higher then expected. This coupled with US weaker Soya prices have pushed prices lower. Yet still weather in Asia is predicted to be drier for the next couple of months which could impact on crops going froward. There is still the threat of lower demand in some key buying areas could also impact Palm oil over the spring period. China and US trade talks though appear to be going well which could add some strength to the current weak US soya market. For now though most seem to predict a stable edible oil market this year with the possibility of a slow but small increase over the year. Coconut oil remains weak as strong supply keeps the market low. However drier conditions in Asia could see crops start to slow in the second half of the year. We are seeing some tightening of coconut oil supply for Indonesia at the moment.
Desiccated prices remain weak along with the edible oil market. But whilst buyers are keen to cover into 2020 shippers are not so keen. Dry conditions in Asia could see supply tightening during the second half of the year and so likely to push up prices. Shippers from the Philippines are selling through to September but some in Indonesia are now not offering much past April as they wait to see how supply fairs for raw nuts.
