Palm oil prices have fallen since Indonesia clarified the ban on exports

Palm oil prices fell sharply last week, but Indonesian authorities on Friday announced a ban on palm oil exports from April 28. However, the government further clarified on Monday that the ban would apply only to highly refined palm oil and RBD palm olein and would not apply to crude palm oil, after which prices fell again.

Indonesia's share in world palm oil production is 60%, and exports reached 26 million tons last year. Therefore, the news of a ban on exports from the world's largest supplier of edible oil amid a long blockade of sunflower oil exports from Ukraine shocked markets.

Indonesia and Malaysia produce 90% of the world's palm oil and supply it to all of Southeast Asia, including India. Concerned about the possible shortage of edible oils, experts from the Malaysian Palm Oil Council have called on importers of palm oil to refrain from processing it into biofuels, as it is now important for buyers to set the right priorities for food and fuel production.

The decline in world oil prices caused by the spread of covid in China has increased pressure on palm oil prices.

July futures for palm oil on the stock exchange in Malaysia last week fell 1.7% to 6355 ringgit / t, and yesterday fell another 2% to 6229 ringgit / t or $ 1431 / t.

At the same time, May soybean oil futures on the Chicago Stock Exchange rose 5.4% last week, but fell 0.6% yesterday to $ 1,822 / t, adding 14.6% for the month.

The increase in the price of palm oil supports the prices of sunflower oil, which is traded in the range of 1750-1750 $ / t FOB.

Egyptian GASC on Tuesday will hold two tenders for the purchase of soybean and sunflower oil for delivery in June and July, which will be new price indicators for markets.