The vegetable oils complex is still mainly driven by sentiment and news, as it has been for quite a while now. Last and this week have once again shown the crucial role that some governments can have on markets and prices within these markets. For the fourth time already, the Indonesian government has created a lot of uncertainty by altering its export policies. While only seeming to consider their domestic supply and approval by the public.
Many anticipated a decrease in the prices for palm products once the export ban was lifted, but the reality is that prices have only shown an upward trend since the DMO was re-introduced. The increased uncertainty is driving buyers even more towards other vegetable oils, as they seem to be more and more concerned with the uncertainty and risk involved with using palm oil. With the pending shortage of food and oils around the world, we definitely do not seem to be past the phase full of uncertainty yet.
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