Palm Oil Hits All-time High

Palm Oil (B-Trams): Palm Increased to an all-time high of 5700 MYR/T, boosted by mounting concerns over supply and following a rise in prices of other vegetable oils and crude oil.

Indonesia, the world’s biggest palm oil producer, said it would start requiring palm oil exporters to get shipment approvals from the trade ministry starting on January 24th, while the government is also discussing a plan to limit exports of the vegetable oil.

In addition, output in the second-largest producer Malaysia fell 11.3% from a month earlier to 1.45 million tons in December, as floods destroyed crops in some areas and as the country is facing labor shortages related to covid related restrictions.

Still, investors believe the rally is set to run out of stamina as top importer India will likely shift to cheaper substitutes, such as soy oil and sunflower oil.