Malaysian Palm Oil:futures extended gains to above MRY 6,400 per tonne in early June, trading not far from a record high of 7268 hit on March 9th as consumption is outpacing supply.
The production outlook in Malaysia continues to deteriorate amid a labour crunch while Indonesia has so far re-entered the export market only slowly with export volumes allowed significantly low.
Indonesia and Malaysia account for about 85% of the world’s supply of palm oil. The Malaysian Palm Oil Council forecast Malaysia’s 2022 production at 18.6 million tonnes, below previous expectations
After Indonesia has canceled a long-awaited plan to send a batch of workers to operate in labor-starved Malaysia’s palm oil plantations.
Palm oil prices are more than 35% higher this year as Russia’s invasion of Ukraine disrupted sunflower oil shipments and export restrictions in top producer Indonesia further squeezed global supplies