Palm oil stocks rise in Singapore as Indonesia lifts export ban

Published 2022년 5월 19일

Tridge summary

Indonesian palm oil exports are set to resume on Monday, leading to a surge in shares of Singapore-listed palm oil producers. The decision comes after a temporary export ban imposed by Indonesia in late April, aimed at reducing soaring cooking-oil prices, but which worsened the global edible oils shortage. However, the ban was unpopular among powerful palm oil exporters and regional governments, ultimately leading to its lifting due to improved bulk prices. This development is expected to boost Indonesia's export earnings, although logistics bottlenecks may delay the clearance of planters' backlog of export shipments, affecting sales recognition.

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

Original content

By Yi Wei Wong Shares of Singapore-listed palm oil producers jumped in early Asian trade, after Indonesia said it will end a temporary ban on palm oil exports on Monday. Among Singapore-listed plantation stocks, Bumitama Agri Ltd. was recently 8.0% higher on Friday, Golden Agri-Resources Ltd. rose 7.3% and First Resources Ltd. added 3.8%. Olam Group Ltd. and Wilmar International Ltd. were up 2.1% and 2.7%, respectively. Malaysia-listed plantation shares, which initially rose when the ban was introduced in late April, edged lower. IOI Corp. Bhd. shed 0.7% and Kuala Lumpur Kepong Bhd. was down 0.6%. Indonesia, the world's largest palm oil producer, last month imposed export restrictions on some palm oil products in an effort to cool soaring cooking-oil prices, a move that worsened the global shortage of edible oils. The Indonesian government on Thursday said it will end the ban due to an improvement in bulk prices, although analysts noted that end-user prices remain high and said ...

Source: Marketwatch