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Brokers and traders forecast palm oil prices could fall in coming weeks if the coronavirus continues disrupting travel and leads to wider shutdowns of offices, malls and factories. Malaysia is counting on instant noodle production to support palm oil demand in China.
A shutdown-driven drop in food-service demand would weaken palm oil consumption, while stronger packaged-food output could partly offset it. The net effect points to downward pressure on palm prices.
reuters.comMei Mei ChuFeb 4, 2020After 10 past bearish disease events, Palm Oil moved a median +0.4% over 5 sessions (50% higher; middle half -5.0% to +1.3%), and -8.5% 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.
Traders expected further price declines if coronavirus shutdowns spread in China, reinforcing bearish demand sentiment, though noodle demand offers partial support.
