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Palm Oil Rallies 10% as Market Prepares for Indonesia Export Ban

  • Top exporter will halt shipments of palm olein from Thursday
  • Policy has roiled market as the ban is not as strict as feared
Palm oil loaded into trucks at Tanjung Priok Port in Jakarta on April. 26.
Palm oil loaded into trucks at Tanjung Priok Port in Jakarta on April. 26.Photographer: Dimas Ardian/Bloomberg
Updated on

Palm oil jumped 10% while rival soybean oil hit a fresh record high as traders prepare for the start of Indonesia’s export halt.

Malaysia, the world’s second-biggest producer, is set to see a surge in demand for its products after top grower Indonesia said it will ban exports of RBD palm olein from April 28 to protect domestic supply. Crude palm oil shipments can continue. The move will remain in place until domestic cooking oil prices ease.