Palm Oil increased to an all-time high of 5726 MYR/T, amid mounting concerns about supply and following a rise in prices of other vegetable oils and crude oil. Indonesia, the world’s biggest palm oil producer, implemented a new rule that made it mandatory for palm oil producers to sell 20% of their output to domestic consumers at fixed prices.
Also, Indonesia’s palm oil exports are projected to fall 3% to 33.21 million tonnes this year. Meanwhile, output in the second-largest producer Malaysia is likely to stay tight in the first quarter of 2022 as the country is still facing an acute labor shortage related to covid related restrictions and as floods destroyed crops in some areas at the end of last year.