Indonesia: Prices for palm oil rose by 12% in two days

Published 2022년 4월 28일

Tridge summary

Indonesia, the world's largest palm oil producer, has imposed a ban on exports of crude palm oil, RBD palm oil, and waste oil to address a shortage of cooking oil derivatives, causing a sharp increase in quotations. The initial ban only included refined palm olein. The market's reaction included a record high price of 6987 ringgits / t or 1602.9 $ / t. The government's decision has concerned traders and global buyers due to Indonesia's limited storage infrastructure. Countries like Bangladesh are adjusting import tariffs, and India's palm oil imports are expected to exceed 600,000 tonnes in May. The ban has also impacted the global market, with soybean oil prices surging in China. The situation is expected to affect the price of sunflower oil, potentially benefiting Russia.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The Indonesian government's ban on palm oil exports has worried the market, and after new explanations from the government, quotations rose sharply. Indonesia, the world's largest producer of palm oil, is ready to extend a ban on exports of crude oil in the event of a shortage of derived products used in cooking oil. This was announced yesterday at an official meeting of the authorities with processors, although on Monday the government announced a ban on exports of only refined palm olein. The market reacted to the first report on the export ban on Friday with a slight increase in prices by 0.6%, on Monday they even fell by 2%, but on Tuesday rose by 2.7% and on Wednesday by 9.1% to a record level 6987 ringgits / t or 1602.9 $ / t. The reason for this jump was yesterday's government statement on the possible extension of the ban on exports of crude palm oil, RBD palm oil and waste oil from April 28 to reduce domestic prices for vegetable oils. Traders were initially reluctant to ...

Source: Graintrade