Palm oil vendors are rubbing their hands; global prices are rising

Prices for palm and other types of vegetable oils reached record levels amid market participants' concerns about a Russian military operation in Ukraine. In addition to hostilities on the territory of Ukraine, the market is negatively affected by a drop in the volume of transportation along the Black Sea, through which 60% of the world's sunflower oil is transported. “Asian and European processors have dramatically increased purchases of palm oil to replace sunflower oil. All this led to a jump in palm oil prices, ”Reuters quotes a Mumbai dealer of one of the major international trading companies. The rise in prices for vegetable oil began last week amid growing tensions between Russia and Ukraine, as well as due to increased demand for biofuels. Already on February 23, three-month futures for the supply of Malaysian palm oil reached $1,433 per ton. Malaysia and Indonesia are the world's largest suppliers of palm oil, accounting for 85% of the total market. “The development of the ...