Indonesia's Cooking Oil Export Ban Pumps Up Palm, Soyabean Oil Prices

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.
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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