Indonesia is one of the world’s major suppliers of edible oils. Affected by the epidemic and emergencies, the global supply of edible oil is in short supply. Even Indonesia has encountered the same predicament. In order to ensure the normal supply of domestic edible oil, Indonesia 22html announced on the 5th that starting from the 5th of this month, Indonesia will suspend the export of edible oil and related raw materials, including palm oil .
Palm oil is one of the most consumed vegetable oils in the world. Palm oil is found in common foods such as instant noodles, various pastries, fried chicken, and candies. Indonesia's palm oil production ranks first in the world. In 2020/21, Indonesia's palm oil production reached 43,500 tons, accounting for 59.70% of the world. Indonesia’s “oil ban” has had a huge impact on global edible oil supply.
On that day, the price of international soybean oil futures soared, reaching a maximum of 83.21 cents/ pounds, setting a record high. "Oil prices" have remained high this year. According to statistics, international soybean oil prices have increased by nearly 50% this year. Indonesia's ban on the export of edible oil and related raw materials has made the global supply of edible oil even tighter and prices may rise further.
One of the reasons for the shortage of palm oil is the shortage of its substitute sunflower oil . In the past five years, Russia and Ukraine have exported a total of 10450,000 tons of sunflower seed oil, accounting for 78.3% of the world's total exports. This year, tensions between the two countries have continued, and the supply of sunflower oil has been interrupted, resulting in a sharp rise in global demand for other edible oils.
my country is a major importer of Indonesian palm oil. Indonesia’s suspension of exports of palm oil will also have a certain impact on my country’s edible oil market. In the first quarter of this year, Indonesian palm oil accounted for 52% of my country's total imports. In order to ensure sufficient supply of edible oil in my country, China once again emphasized the need to increase domestic soybean and oilseed production capacity. At the same time, DCE has also accelerated the pace of listing soybean No. 1, soybean No. 2, and soybean oil futures and options, providing more channels for companies to avoid price risks.
Text | Fu Jia Title | Zeng Yi Review | Li Zepu
