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Palm oil is expected to miss its usual Ramadan demand surge because COVID-19 lockdowns are curbing purchases by major importers including India, Pakistan, Bangladesh, Saudi Arabia and Iran. Purchases had picked up in early March but slumped after lockdowns began.
Malaysian palm oil exports in March fell 27% year on year to 1.2 million tonnes.
The loss of the seasonal Ramadan restocking window removes a demand boost that normally supports prices, so prices may stay under pressure through the period.
ofimagazine.comQuartz Business MediaMay 1, 2020After 158 past bearish trade events, Palm Oil moved a median +0.0% over 5 sessions (51% higher; middle half -1.3% to +0.8%), and -1.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Lockdowns are curbing the usual Ramadan buying by major importers, removing seasonal demand support.
Lockdowns are cutting importer purchases and the usual Ramadan demand surge is expected to be missed, a bearish demand signal published 2020-05-01 inside the window.
