AUGAF
  • Home
  • Politics
  • Business
  • National
  • News
  • Finance
  • Technology
  • Sports
  • International
  • CommoditiesNew
  • Contact
No Result
View All Result
  • Home
  • Politics
  • Business
  • National
  • News
  • Finance
  • Technology
  • Sports
  • International
  • CommoditiesNew
  • Contact
No Result
View All Result
AUGAF
No Result
View All Result
Home Business

Palm oil rises as Indonesia sets preconditions on resuming exports

admin-augaf by admin-augaf
May 20, 2022
in Business, International
Reading Time: 2 mins read
0
Palm oil rises as Indonesia sets preconditions on resuming exports

Palm oil rises as Indonesia sets preconditions on resuming exports

Share on FacebookShare on TwitterWhatsapp

Jakarta May 20 2022: Third month palm oil futures on the Malaysian derivatives exchange rose as much as 4% during afternoon trade May 20 after Indonesia announced that a resumption of exports from the country will be accompanied by domestic market obligations forits palm oil producers.

The August crude palm oil contract on the Bursa Malaysia Derivatives exchange was up 3.8% at MR 6,304/mt ($1435.4) at 3:34 pm local time May 20.

While Indonesia is the world’s largest palm oil producer and exporter, international prices of the commodity are underpinned by prices on BMD, the commodities exchange of the second-largest supplier Malaysia. Indonesia and Malaysia account for 85% of the world’s supply of palm oil.

Indonesia will maintain a domestic market obligation of 10 million mt of cooking oil, under which producers will have to reserve 8 million mt of cooking oil and 2 million mt of raw materials, the country’s coordinating minister for economic affairs Airlangga Hartarto said in a video broadcast May 20.

Indonesia will also determine the size of the domestic obligation for each palm oil producer in the coming days and the country’s logistics agency is tasked with building buffer stocks at 10% of total demand, Hartarto said.

“Given the 10 million mt requirement, looks like Malaysian palm oil is still in demand and that is causing bullishness in the crude palm oil [CPO] market today,” David Ng, senior trader at Kuala Lumpur-based IcebergX Sdn Bhd told S&P Global Commodity Insights.

Indonesia’s President Joko Widodo announced on May 19 that Jakarta is revoking a ban imposed in April on exports of crude and refined palm oil products starting May 23.

Now that the “fear factor” of when the ban will be removed is out of the picture, Malaysian factors such as rising exports in May and tapering production due to worker shortages at plantations would be key drivers, said Lingam Supramaniam, director with vegetable oil brokerage Pelindung Bestari at Port Klang Malaysia.

Malaysia’s exports rose between 20% and 30% in the first 20 days of May, according to data from various cargo surveyors such as Intertek and Amspec.

Indonesia’s export outlook for marketing year 2021-22 (October-September) was lowered on May 12 to 25 million mt by US Foreign Agricultural Service — a 12 year low — citing Jakarta’s slow export pace through the first six months of 2021-22 and various palm oil export policies in effect since November, 2021.

Tags: Palm oil
admin-augaf

admin-augaf

Related Posts

Sazgar Sold 15,665 Auto Rikshaws During Fiscal Year 2021
Business

SAZEW 4-Wheeler Sales Doubled in Fiscal Year 2025

July 4, 2025
SNGP
Business

SNGPL Received Payments From Power Division – PSX

July 4, 2025
ARAMCO
Business

Saudi Aramco Looking to Sell Power Assets to Raise Billions – Reuters

July 4, 2025
Fair Global Consult Fair Global Consult Fair Global Consult
ADVERTISEMENT

Recent News

Sazgar Sold 15,665 Auto Rikshaws During Fiscal Year 2021

SAZEW 4-Wheeler Sales Doubled in Fiscal Year 2025

July 4, 2025
SNGP

SNGPL Received Payments From Power Division – PSX

July 4, 2025
ARAMCO

Saudi Aramco Looking to Sell Power Assets to Raise Billions – Reuters

July 4, 2025
Oil Prices Fall After Iran Attack As Market Draws Down Risk Premium

Oil Falls as Iran Affirms Commitment to Nuclear Treaty

July 4, 2025
China Detains Investment Bankers, Takes Passports in Corruption Sweep

China Plans Nationwide Subsidies to Boost Birthrate

July 4, 2025

Popular News

  • NSS

    President Prohibit National Savings For Changing Rates on Existing Certificates Retrospectively

    0 shares
    Share 0 Tweet 0
  • Pakistan Rupee Appreciate against Dollar in Interbank as IMF Confirmed Board Review Date

    0 shares
    Share 0 Tweet 0
  • Pakistan Rupee Fall After 13 Days of Successive Gains against Dollar on Lower Remittances and Strengthening of US Dollar

    0 shares
    Share 0 Tweet 0
  • Petrol Prices in Pakistan to Return to July 2023 Levels

    0 shares
    Share 0 Tweet 0
  • Pakistan Central Bank Issued Show Cause Notice to Eight Banks Over Currency Speculation

    0 shares
    Share 0 Tweet 0

Categories

  • Budget
  • Business
  • Culture
  • Finance
  • International
  • National
  • News
  • Politics
  • PTI
  • Sports
  • Technology
AUGAF Logo

Follow us on social media:

Recent News

  • SAZEW 4-Wheeler Sales Doubled in Fiscal Year 2025
  • SNGPL Received Payments From Power Division – PSX
  • Saudi Aramco Looking to Sell Power Assets to Raise Billions – Reuters

Category

  • Budget
  • Business
  • Culture
  • Finance
  • International
  • National
  • News
  • Politics
  • PTI
  • Sports
  • Technology

Recent News

Sazgar Sold 15,665 Auto Rikshaws During Fiscal Year 2021

SAZEW 4-Wheeler Sales Doubled in Fiscal Year 2025

July 4, 2025
SNGP

SNGPL Received Payments From Power Division – PSX

July 4, 2025
  • Home
  • Politics
  • News
  • Business
  • National
  • Finance
  • Technology
  • International

© 2021 AUGAF.

No Result
View All Result
  • Home
  • Politics
  • Business
  • National
  • News
  • Finance
  • Technology
  • Sports
  • International
  • Commodities
  • Contact

© 2021 AUGAF.