If You Haven't, Try Our Daily Grain Market Reports FREE for 30 Days!

Palm Oil Is The Reason. Politicians Are the Cause. 04/25/2022

We learned a long time ago politicians are far more unpredictable than the weather. Overnight was another classic example.

Indonesia announced Friday a two month ban on palm oil exports. We made the comment Saturday that it was amazing soybeans were down Friday with about half of the world's palm oil exports being shut off for two months.

Palm oil traded more than 4 cents a pound (huge) higher last night and beans traded 7 cents higher before weakening, which at the time made no sense at all.

Indonesia "clarified" the export ban today. The ban only applies to refined palm oil products.

We mentioned Saturday that Indonesia produces about 28 million mt of palm oil a year, but only consumes about 16 million mt. We predicted the export ban would be short lived, but we did expect the ban to last more than 24 hours.

Before you panic sell beans, suppose that the announcement on Friday had been Indonesia had banned the export of all refined palm oil products for two months.

Want to read more?

Subscribe to www.wrightonthemarket.com to keep reading this exclusive post.

Subscribe Now

Recent Posts

See All