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Global soya oil prices surge to a record high as Indonesia bans palm oil exports

Published Apr 26, 2022

Tridge summary

Record high soybean oil prices are being driven by a combination of factors including Indonesia's export ban on palm oil, loss of sunflower oil shipments from Ukraine, and drought in Argentina, the world's top soybean oil exporter. These issues, coupled with surging demand for food and biofuels as COVID-19 restrictions ease, have led to a significant increase in global vegetable oil prices. The United Nations food agency reported a nearly 13% rise in food prices in March, and arguments in articles point out the potential for further food inflation due to these supply challenges.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Soybean oil prices have soared to a record high on Indonesia’s decision to effectively ban exports of palm oil. The loss of shipments from Ukraine, the world’s top supplier of sunflower oil, and drought in the world’s top soybean oil exporter Argentina had already sparked a sharp rise in global vegetable oil prices. The tightening vegetable oil supplies come as easing COVID-19 restrictions have sparked a surge in demand for food and biofuels. While oilseed crushers have announced plans to expand processing capacity, most of the new facilities will not be online for at least a year, industry sources said. Indonesia, the world’s top producer and exporter of palm oil, blocked exports from April 28 to tackle rising domestic prices. The move looks set to fuel already surging food inflation elsewhere. Food inflation has become a major concern around the globe following Russia’s invasion of Ukraine, a major exporter of wheat, corn, barley, sunflower oil and rapeseed oil. The United ...
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