June 4, 2023

South Sudan News Agency

Complete English News World

The right storm may come and the price of cooking oil will continue to rise

Probably would be better Sunflower and corn plantations that will soon be cultivated in Ukraine and Russia will be limited to a small area. He said James Fry on a conference paper. One month ago, LMC International, a consulting firm, predicted that exports of Black Sea sunflower oil would rise from 2 million tonnes to 13.5 million tonnes in 2021-22. “It’s questionable how much damage will be done to it because of the war,” Fry says.

Oil export reserves are low and the cabinet is emptyFry explains.

There is no other option but to let the work of rationalizing demand to balance the market do more work.

Crude palm oil, which is subject to local transport in Malaysia, is expected to trade at $ 1,578 to $ 1,940 per tonne by July, the expert said. A higher rating would mean an increase in price of about 20 percent from the current price. The future subscription in Kuala Lumpur today is around 6,823 ringgit ($ 1,631)

This year, the quote is up 32.3 percent from this year.

Exports of palm oil in Southeast Asia are expected to exceed 2020 levels in the third quarter, Fry said. Experts on Monday predicted that Malaysian production would grow by only 3-4 percent this year due to labor shortages. There will be a “real crisis” in the supply of cooking oil in the next six months. According to Fry, inflation will not improve and central banks will begin to raise interest rates to reduce economic activity and reduce demand for food and fuel supplies. The most relevant source of short-term confidence in high palm oil exports would be the removal of the supply quota by Indonesia, the largest producer, but Fry said. It is doubtful whether this will happen.

However, according to Fry, this is the price of the most consumed cooking oil However, in the end it will decreaseSupply increases in the second half of the year – down from $ 1,480 to $ 1,675 per tonne on crude palm oil, experts say.

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