Vegetable oil supplies are also down at a time when the easing of Covid-19 restrictions has led to a surge in demand for food and biofuels.
“While oilseed crushers have announced plans to expand processing capacity, most of the new facilities will not be operational for at least a year,” industry sources said.
Soybean oil prices on the Chicago Stock Exchange jumped 4.5% to an all-time high on Friday. of 83.21 cents per pound, before falling back to 81.42 cents. Prices went up almost 50% so far this year.
Indonesia, the world’s leading producer and exporter of palm oil, has blocked exports from April 28 to deal with rising domestic prices. The move is likely to push up food inflation, which is already rising elsewhere.
“This is bad news for vegetable oil consumers in many countries, who actually rely heavily on palm oil in view of the shortage of sunflower oil, rapeseed oil and soybean oil,” said Siegfried Falk. , an analyst at Oil World, which is based in Hamburg.
Food inflation became a major concern around the world following the Russian invasion of Ukraine, a major exporter of wheat, corn, barley, sunflower oil and rapeseed oil.
The United Nations food agency reported earlier this month that food prices had risen nearly 13% in March to a new record high.
Argentina, the world’s leading supplier of processed soybeans ahead of Brazil and the United States, briefly halted new foreign sales of soybean oil and meal in mid-March.before raising the export tax in an attempt to reduce local food inflation.
Source: Ambito
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