- Palm oil jumped 10% while rival soybean oil hit a fresh record high as traders gear up Indonesia's export halt till the domestic cooking oil prices ease, Bloomberg reports.
- The policy has agitated the global $50 billion palm oil market as Indonesia initially said it would ban all exports of cooking oil before clarifying that it would halt only certain products.
- Also Read: Indonesia's Cooking Oil Export Ban Could Further Raise Costs For Likes of Nestle, Mondelez, Unilever
- The policy could still jeopardize the world as it accounts for a third of the global vegetable oil trade. World food prices are already at an all-time high with massive supply disruption sparked by the war in Ukraine.
- Malaysia, the second-biggest producer, will likely see higher demand for its products after top grower Indonesia banned RBD palm olein exports from April 28.
- An expert disclosed that all attention for olein demand turned to Malaysia, including China. Palm oil and soyabean oil prices rallied on short-covering ahead of the long holiday, a weakening ringgit, and a sudden surge in May demand for processed oil, adding "widespread belief" that Malaysia's exports will soar.
- Palm Oil photo via Wikimedia Commons
