The demand for palm oil in India will resume no earlier than 2021
Demand for palm oil in India will not resume before the 1st quarter of 2021, and prices will remain low during the current year, reports AgriCensus citing performance analyst Dorab Mistry at the webinar, which was conducted by the Indian Association of producers of vegetable oil SEA.
the revival of the procurement that was observed in may and June, will soon be completed as it was due to the restocking that due to quarantine restrictions using Covid-19 fell to record lows.
at the End of 2020, the demand for palm oil in India will reach 85-90% of dekorativnogo level, and will fully recover only in the first or even the second quarter of 2021.
the Current rise in prices, the expert explains the activation of the economy that is observed in almost all countries. But from mid-July appears trends the recession, the economic slowdown and challenging conditions for commodity markets. The price level of palm oil will be reduced to cost Dorab Mistry estimated at 1500-1800 yuan/ton or 350-420 $/t depending on the origin.
However, by the end of the current year, palm oil prices will remain under pressure from low demand, which will be unstable due to the risks of the second wave of the pandemic Covid-19 against the backdrop of increasing signs of further slowdown in the global economy. Unreasonable raising prices will destroy demand and create problems in October, November and December. So hope for the rising cost of raw materials and the 2nd quarter of 2021.