Palm oil prices reached a record 1300 $

Palm oil futures on the Malaysian stock exchange continue to update records amid restrictions on crude oil exports from Indonesia, even despite forecasts of increased production in both countries.

The Ministry of trade of Indonesia, in addition to quotas for the export of crude palm oil, introduced a rule from January 27, according to which a certain part of palm oil must be sold on the domestic market at a maximum price of 9,300 rupees/kg (0 0.6465/kg) for crude oil and 10,300 rupees/kg for olein, which increased pressure on producers and exporters and reduced export volumes.

Yesterday, March palm oil futures on the Malaysian stock exchange rose 2.2% to a record 5,444 ringgit/ton, or.1,298/ton, adding 10% of the price in two weeks.

Although according to a Reuters survey of 18 analysts and industry representatives, in 2022 the average price of palm oil will be 4,000 ringgit/ton, which will be 3.4% lower than the average price of 2021 – 4,142 ringgit/ton.

The reduction in prices will be supported by an increase in production in Malaysia and Indonesia in 2022 for the first time in the last 3 years. It is expected that compared to last year in Indonesia, it will grow by 3.4% from 46.89 to 48.5 million tons, and in Malaysia – by 3.9% to 18.8 million tons.

According to forecasts of experts of the Malaysian Palm Oil Council (MPOC), India in 2022 will reduce the import of palm oil by 5% compared to the previous year to 8 million tons due to high prices for crude oil. The current structure of import duties on vegetable oils contributes to the purchase of crude soybean oil, the tax for which is 5.5% compared to 8.25% for SRO and 13.75% for refined palm oil.

Following palm oil, March soybean oil futures on the Chicago Stock Exchange rose to вчора 1,418/ton yesterday, adding 10% of the price in two weeks.

Prices for black sea sunflower oil reached F 1,400/ton FOB amid the growth of neighboring oil markets, but further growth is limited by buyers ' concerns about possible Russian aggression against Ukraine.  

However, hysteria about this is decreasing, so in the near future we can expect a decrease in prices for oil and vegetable oils, as well as an increase in the supply of sunflower oil from the Black Sea region and soybean oil from South America.