Indonesia announced on Friday (22nd) that it will ban the export of palm oil to the world to ensure that the domestic edible oil supply is sufficient, which is likely to further push up global food prices and exacerbate inflationary pressures.
As a key global producer of sunflower oil, the Black Sea region accounts for about 76% of global sunflower oil exports. However, since Russia’s move to Ukraine in February, the black sea region’s commodity exports have been disrupted, seriously affecting the global edible oil market, and Argentina, Brazil and Canada have also suffered from drought, resulting in damage to the supply of alternative vegetable oils such as soybean oil and rapeseed oil.
Indonesian President Joko Widodo said that the ban on the export of edible oil and edible oil raw materials will take effect indefinitely from next Thursday (28th), a move to ensure the domestic food supply, and he will be responsible for policy evaluation to ensure that the domestic market edible oil supply is sufficient and affordable.
The above news led to a surge in the price of alternative vegetable oils. Soybean oil futures for May delivery rose as high as more than 4 percent on Friday to 84.85 cents a pound, a record high, the Chicago Board of Trade quotations showed. Soybean oil is the second most used vegetable oil in the world.