Indonesia lifts ban on palm oil exports on May 23
Against the background of improving the price situation in the domestic market, Indonesia on May 23 lifts the ban on exports of palm oil, which has been in force since April 28. Traders predicted that the ban would not last long, as the country does not have the capacity to store significant stocks of products.
So far, palm oil prices in Indonesia have fallen from 19.8 thousand rupees/l to 17.2-17.6 thousand rupees/l, although the government has promised not to lift the export ban until prices fall to 14 thousand rupees/l.
July palm oil futures on the Malaysian stock exchange fell only 1% yesterday to 6072 ringgit/t or $ 1380/t, as the market expected the lifting of the export ban and the price had fallen by 4.8% on Friday.
South America’s crop decline keeps soybean oil prices high, while supplies of sunflower oil from the Black Sea region are limited.
July futures for soybean oil on the Chicago Board of Trade yesterday did not respond to news from Indonesia, falling only 1.2% to $ 1751/ton, although down from 5.3% on Friday.
The blockade of Ukraine’s seaports and limited supply from Russia keep sunflower oil prices high. In the new season, they will also remain high given the forecast of reduced sunflower yields in Ukraine.
In addition, China’s decision to lift restrictions on canola imports from Canada for Richardson and Viterra, which took effect on March 6, 2019, may support oil prices in the new season. Prior to their introduction, China imported 4.87 million tons of Canadian canola in 2018, in 2019 – only 1.54 million tons, and in 2021 increased imports to 2.25 million tons.
Recall that rainy and cold weather is delaying the sowing of canola in Canada, and this may reduce future harvests.
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