The quick spread of Covid-19 and the collapse of the crude oil marketplace have merged to crush palm oil potential clients in recent weeks, and the portends for the months in advance are ominous.
Palm marketplace has experienced a range of support aspects in its favour including Indonesia’s large biodiesel mandate (B30) and weak general palm oil output expansion. Whilst Malaysia faces de-expansion, Indonesia’s output this yr will broaden marginally. But, ironically, none of the support aspects have arrive to palm’s rescue.
Covid-19 for a single has exerted a disastrous effect on the palm oil marketplace, pulling prices down precipitously.