Indonesian Palm Oil Ban Causes Soyoil Prices to Rise

Soybean oil prices soared on Friday as Indonesia banned the export of palm oil to address local shortages.

Soybean oil is considered to be an easy substitute for palm oil. Palm oil in Kuala Lumpur reached RM6,355 ($1,469) a ton, a 0.7 percent increase.

The Chicago Board of Trade reported a record high of 83.21 cents per pound on soybean oil, Friday. The price has gone down to 81.42, still a record.

Indonesian President Joko Widodo said on Sunday that the country is facing a shortage of palm-based cooking oil.

Indonesia’s export ban on palm oil will begin on Thursday. The country is expecting to reduce cooking oil prices in the country as a result of the export ban.

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