RRI.CO.ID, Jakarta - Following the peace agreement between Iran and the United States, global commodity prices moved lower. Crude oil prices fell to around US$70 per barrel for WTI and US$73 per barrel for Brent.
Lower oil prices also may have weighed on other commodities. Rubber and palm oil, two of North Sumatra’s main products, also declined.
On June 22, 2026, global crude palm oil (CPO) traded at 4,667 Malaysian ringgit per ton. It has now fallen to 4,557 ringgit per ton, down about 2.4% over the past week.
Rubber prices also dropped. The price declined from US$2.28 per kilogram on June 22 to around US$2.24 per kilogram, a decrease of about 1.8%.
Rubber is now about 4.3% below its highest price in 2026, while CPO is around 5.9% below its peak of 4,841 ringgit per ton. Lower global prices may offset the prices received by farmers for fresh fruit bunches (FFB) and rubber.
At the same time, the weaker Indonesian rupiah, trading around 17,950 to 18,000 per US dollar, helps offset some of the impact from lower commodity prices. Even so, farmers may still face increased price pressure as geopolitical tensions ease.
Despite the recent decline, palm oil still remains promising over the long-term. Demand is expected to remain stable, and prices could rise again if Indonesia implements its planned B50 biodiesel program in July.
Rubber prices are expected to remain under pressure for now. Future price movements will largely depend on global political and economic developments.
Writer: Gunawan Benjamin (Economist, Islamic University of North Sumatra)
News Recomendation
Loading latest news.....