Palm Oil

Palm oil prices have risen due to worries about damage caused to the crop by dry weather in South East Asia and the recent strengthening of the US$, the currency the commodity is mainly traded in. Prices are down 5.4% year on year, with global production for 2015/16 forecast to increase by 2% year on year.

Steel coil prices rose as US steel companies instigated higher prices to try and restore profitability. However, low Chinese demand and high Chinese exports continue to add downward pressure.

Cocoa bean prices have fallen to a four-month low recently, due to confusion in the market over the level of production for 2015/16. In addition, concerns about the effect of weak economic sentiment on demand in China have added downward pressure to prices.