The average price of palm oil in January 2020 according to MPOC data was $695.7 at the current exchange rate
As of March 2020, the average price of palm oil according to MPOC was 2,382 ringgit per ton ($549.8). The pandemic could not but affect the palm oil market, analysts among the factors influencing the palm oil market called a drop in sales in the HORECA segment (about 30-40% of the fall in the three largest markets - India, China, and the EU), as well as the situation with falling oil prices, which makes biofuels unprofitable.
Palm oil reserves in February-March 2020 according to MPOC were about 1.7 million tons, but in the current situation could grow in April 2020 to 2.45 million tons, while in February-March 2020 there was an increase in palm oil production in Malaysia. The demand for palm oil in the world fell by 25% in the period under review, according to analysts' estimates.
At the same time, analysts note similar trends in the market of other vegetable oils and hope that the demand for palm oil can grow due to the consumption at households in the region of South and South-East Asia, for example, who are forced to cook at home under quarantine and save money.
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