ICECRD INFO – The trend in the direction of crude oil prices depends on the length of time the Covid-19 outbreak and economic recovery will take place. If it is estimated that the Covid-19 outbreak will last until the end of 2020, then the economic recovery will only begin in early 2021, meaning that crude oil prices will still be relatively low (less than US $ 30 / barrel) in a minimum of one year to come.
The price of palm oil since early 2020 (US $ 810.07 / ton) has decreased by 21.6% in the last three months. This price decline is expected to continue in line with the decline in demand for palm oil. Even so, this decline will not progress like the decline in crude oil prices. This is because palm oil is a raw material for the food industry that is still needed even though demand conditions remain depressed. (Anjas)