Indonesia added fuel to the fire in the vegetable oil market
Indonesia
Published May 5, 2022
Tridge summary
The decision of the world's largest palm oil producer to ban exports will lead to higher prices for all major edible oils, including palm, soybean, sunflower and rapeseed oils, industry experts predict. This will put additional strain on cost-sensitive consumers in Asia and Africa, hit by higher fuel and food prices, Reuters reported.
Original content
04.05.2022 The decision by the world's largest palm oil producer to ban exports will push prices up for all major edible oils, including palm, soybean, sunflower and rapeseed oils, industry experts predict. This will put additional stress on cost-sensitive consumers in Asia and Africa, hit by rising fuel and food prices, Reuters reported. Used in products ranging from cakes and frying oils to cosmetics and cleaning products, palm oil accounts for almost 60% of the world's vegetable oil supply. Indonesia supplies about a third of all vegetable oil. The decision of the country's government led to panic in the world vegetable oil markets. Global supplies have already fallen: production of soybean oil has fallen due to droughts in South America, rapeseed oil due to a sharp drop in rapeseed yields in Canada, sunflower oil due to the situation in Ukraine. Vegetable oil prices have already risen by more than 50% in the past six months as factors such as labor shortages in Malaysia and ...
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