Reversing the Palm oil hedge

I have decided to do recant my blog post about the USD hedge innate in Palm oil.  While indeed palm oil is priced in US dollars in Europe, a large majority of palm oil customers are European and their currency is having a tougher time than even the Ringgit.  So they will likely turn to their own in state oil products as the palm oil is getting expensive versus the Euro.

A large amount of Malaysian investment is from the Eurozone.  So, a poor euro environment makes Malaysian operations more costly from their perspective.  This is probably one of the more subtle themes underpinning the Malaysian economy at the moment.  They are going to buy less of our exports.