Palm Oil Prices to Rise in Q4 or Q1 2015: StanChart

The video discusses the palm oil market, highlighting its price trends and future expectations. It covers investment strategies, focusing on whether to invest in the physical commodity or related equities. The analysis extends to the edible oils market, examining factors like surplus production and demand changes. Future predictions consider production declines in key regions and the impact of weather patterns like El Nino. The video concludes with trading strategies, particularly the spread between soy oil and palm oil.

What is one reason for the recent decline in palm oil prices?

• High production costs

• A glut in the edible oils market

• Increased demand for palm oil

• Decreased competition in the market

What seasonal trend is expected for palm oil prices in Q4?

• Prices will be unaffected by seasonal trends

• Prices will decrease

• Prices will remain stable

• Prices will rise

Why might it be beneficial to invest in the physical commodity of palm oil?

• It is easier to store

• It has a higher return than other commodities

• It is less volatile than equities

• The demand drivers are still intact

What contributed to the high inventories of soy oil in the US?

• Increased exports to China

• Higher prices of soy oil

• Increased production in Canada

• Decreased demand in the biodiesel sector

What is expected to happen to canola production in Canada?

• It will be unaffected by weather patterns

• It will increase significantly

• It will remain stable

• It will decrease

How might the El Nino weather pattern affect the palm oil market?

• It will increase production

• It will have a significant impact

• It will have a muted impact

• It will cause prices to drop

What trading strategy is suggested for soy oil and palm oil?

• Invest in palm oil equities

• Go long on the spread between soy oil and palm oil

• Go long on soy oil and short on palm oil

• Short both soy oil and palm oil