U.S. green energy push sets global edible oils alight, raises food inflation fears

Published 2021년 3월 23일

Tridge summary

U.S. President Joe Biden's push for green fuel is contributing to a significant increase in vegetable oil prices, which are already near record highs. This surge in prices is causing concern for key consumers in India and Africa, contributing to global food inflation. The UN's vegetable oils price index has risen by 70% since June, driven by labour shortages and adverse weather conditions in key production areas. The rise in edible oil prices is also stifling demand in India, the world's top buyer, and is expected to reduce imports. Meanwhile, palm oil production in Asia is projected to rise from April, which may help stabilize the global vegetable oil market.

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

Original content

SINGAPORE (Reuters) - U.S. President Joe Biden’s green fuel push using edible oils is helping drive up vegetable oil prices that are already near record highs, hitting key cost-sensitive consumers in India and Africa and stoking global food inflation fears. The United Nations’ vegetable oils price index has rallied 70% since last June to nine-year highs after labour shortages at Asian palm plantations and bad weather in key sunflower, rapeseed and soybean hubs pinched edible oil output and cut inventories to 10-year lows. The run-up in edible oil prices has helped fuel a rise in the UN’s broader food price index to its highest since 2014, stinging consumers in developing countries and posing a challenge to policymakers trying to spur economic growth. A steep recovery in edible oil demand as consumers and businesses restocked following COVID-19 lockdowns has exacerbated the tightness, as has Biden’s election win and promised ‘Clean Energy Revolution’ that looks set to ignite ...

Source: Reuters