Indonesia’s export ban on palm oil has been lifted after three weeks, which could help alleviate increases in world food and vegetable oil prices. With drought stressing soybean and canola oil, particularly in South America and Canada, driving high prices and shortage concerns. Indonesian President Joko Widodo announced this past Thursday the supply of bulk cooking oil reached a level greater than needed, so the decision was made to export the standard food and cooking ingredient once again. Indonesia represents nearly 60% of global palm oil production.
However, S&P Global Commodity Insights stands by its original statement saying the ban was never necessary and it was an attempt by the country to lower domestic prices. That attempt failed as palm oil prices fell amidst abundant domestic supplies and world vegetable oil tightness elevated other prices.
Read more on Indonesia’s palm oil supplies and the vegetable oil market here.
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