Indonesia has had a big change in attitude and is now exporting a lot of palm oil. This is good news because it could help to solve the global food crisis. However, it is still unclear if this will be a long-term solution or just a temporary respite.
Some analysts say the global food crisis is likely to have reached its peak.
This comes after Indonesia was screaming about high food prices brought on by the Russia-Ukraine conflict in April and introduced a package to hold down overheated domestic food prices, but with little success. As a result, Indonesia announced on April 22 that it was calling a halt to palm oil exports, and oil prices rose on the news to new highs.
And with the relief of high domestic prices and heavy pressure, Indonesia lifted the export ban on May 23, and market prices fell on the news.
Indonesia’s change of attitude: a significant increase in palm oil exports! Global food crisis or temporary respite
Original 2022-06-22 16:08-Golden Ten New Media
Indonesia’s attitude has changed drastically: significantly increase palm oil exports! The global food crisis or temporary respite
Some analysts say that the global food crisis is likely to have reached its peak.
Previously in April, Indonesia was screaming over the high food prices brought about by the Russia-Ukraine conflict, and introduced a package to depress the overheated domestic food prices, but with little success. So, Indonesia announced on April 22 to call off palm oil exports and oil prices rose on the news to new highs.
And with the relief of high domestic prices and heavy pressure, Indonesia lifted the export ban on May 23 and market prices fell on the news.
Indonesia’s change of attitude: a significant increase in palm oil exports! The global food crisis or temporary respite
According to media reports, on June 20, local time, palm oil prices fell by about 9%, and on June 21 fell by another 8.4%, which is the opposite of the high prices in April. The reason is that Indonesia, the world’s largest palm oil exporter, has raised its exports to digest its stocks.
This followed a sudden announcement to ensure domestic stocks to have 10 million tons of edible oil after Indonesia lifted the ban. This significant increase in exports can be said to be a change in Indonesia’s attitude of “refusing to accept” since April. It is reported that Indonesia has issued 1.51 million tons of palm oil export licenses, which means that the market will be flooded with a large amount of palm oil.
At the same time, Indonesia has also lowered the reference price of palm oil for July from June, by about $85 per ton. Palm oil market prices in Asia have fallen accordingly.
And it was previously reported that the wheat drought and flood in the central region of the United States may have a serious impact on the grain harvest. According to the latest reports, the outlook for wheat supply in North America is improving, and Russian wheat production is expected to be likely to be at an all-time high due to favorable weather this year; the UN food price index has also fallen from its high level. This is one of the few pieces of good news for the tight grain market.
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