Global palm oil prices were up by 12% in two days

Published 2022년 4월 28일

Tridge summary

The Indonesian government's decision to ban palm oil exports, particularly crude oil, has caused market disruption, leading to a significant price surge. This action was taken in response to potential shortages of derivative products used in cooking oil. Initially, the ban included only refined palm olein, but there are indications of an extension to other palm oil forms. The price hike has been exacerbated by concerns over Indonesia's limited storage capacity for surplus oil and global demand. Countries like Bangladesh are adjusting import duties to mitigate the effects, while India expects to exceed import targets despite the ban. Additionally, the ban has sparked a rise in soybean oil prices, with concerns over supply from Ukraine due to conflict.

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

Original content

The Indonesian government's ban on the export of palm oil greatly disturbed the market, and after new government clarifications, quotes rose sharply. Indonesia, the world's largest producer of palm oil, is ready to extend the ban on the export of crude oil as well if there is a shortage of derivative products used in cooking oil. This was announced yesterday at an official meeting between the authorities and processors, although on Monday the government announced a ban on the export of refined palm olein only. On Friday, the market reacted to the first message about the export ban with a slight increase in prices by 0.6%, on Monday they even fell by 2%, but on Tuesday they rose by 2.7% and by 9.1% on Wednesday to a record level of 6987 ringgits /t or $1602.9/t. The reason for this jump was the government's announcement yesterday that it might extend the export ban on crude palm oil, RBD palm oil and waste oil from April 28 in order to lower domestic prices for vegetable oils. ...

Source: Oilworld