Up Up Up
The edible oil futures market continues to rise at an accelerated pace. Figures show that exports during March rose just as crops are dropping away! Add to this higher prices on other edibles oils and it pushes up prices further. Fortunately this week there is no technical data due so this week things might be slightly calmer. Coconut oil tracked other edible oils but also rose sharply as concerns over dry weather continued to weigh on the market. Coconut oil closed Friday at $1745 which was up $100 or 6% rise! As coconut oil prices run away so are desiccated prices being dragged upwards as well. Shippers are struggling to keep prices updated and low supply of raw nuts is also hampering production as well. Desiccated shipments are late from Indonesia as well which is helping push up prices.
Palm oil highs
Palm oil has risen to a 2 year high as dry weather is limiting crops and as a result inventories have declined. Figures for March are expected show crops continuing to decline as stock is expected to be down month to month. However seasonal trends should mean that March production does increase slightly. France has voted in their additional palm oil tax as they seek raise revenues on what they see as an environmental poor edible oil. Coconut oil has continued to rise as all the edible oils have been pushed up because of Palm Oil. Coconut oil is above $1400 and is expected to continue to climb following other oils. Desiccated Coconut has moved up sharply as shippers are concerned about rising oil prices. Some shippers continue to be withdrawn and others are late with shipments already. Prices could climb even further if coconut oil moves above the $1500 level. Limited availability for nearby positions is only making the matter worse.
