At the end of June 2022, Indonesia and Malaysia, the world’s largest exporters of palm oil, had a total surplus of around ten million tonnes, according to the foreign palm oil market data.
In those countries, when oil stocks are high, palm oil harvests are approaching and exports are increasing to reduce stocks.
As a result, crude oil and lubricant prices also fell sharply, from around 7,000 Malaysia ringgit (MYR) at the beginning of the year to 3,757 MYR on 6 July.
According to the Oil Association, the CIF price of CP8C MaxIV58 metric ton in May was US$1,736 per tonne in the Yangon oil market in the third week of May.
On 4 July, it was announced that the export of palm oil in Indonesia had increased.
The country’s palm oil industry has allowed five times the amount of oil sold in the domestic market, up from seven times now.
Indonesia resigned on 23 May after a three-week ban on palm oil exports.
Exports have been temporarily suspended, causing the country’s oil reserves to overflow.
As a result, oil refineries in the country have stopped buying palm oil, which has pushed down palm oil prices, making it difficult for palm oil growers.
The official said that the export quota of palm oil has been increased for the affected palm oil growers, according to Indonesian media.
Indonesia is allowed to export 2.4 million tonnes of oil and another 1.09 million tonnes.
As a result, rising foreign oil prices in the Yangon market are likely to fall again soon, according to local and foreign oil market analysts. — TWA/GNLM
