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Thai palm oil stocks extend gains over Indonesia’s ban on palm oil exports
Shares in palm oil companies listed on the Thai exchange continued to rise on Tuesday, amid an overall market dive, as Indonesia’s ban on palm oil exports sparked a spike in cooking oil prices.
While the Stock Exchange of Thailand (SET) index fell by 11 points, down 0.68 per cent, during the morning session, the palm oil group saw its shares surge further from the previous week.
United Palm Oil Industry Plc (UPOIC) reached a peak of 10.40 baht, up nearly 12 per cent from its prior closing. Chumporn Palm Oil Industry Plc (CPI) rose by 7 per cent to 4.44 baht.
Vichitbhan Palmoil Plc (VPO) and Lam Soon (Thailand) Plc (LST) also saw their shares rise over 3 per cent to 2.10 baht and 6.40 baht, respectively.
Last week, Indonesia, the world’s largest edible oil exporter, put a ban on a wide range of palm oil exports beginning April 28 and lasting until domestic prices come down. The measure is seen as exacerbating the insecurity of global food supplies in light of the war in Ukraine.
Indonesia’s edible oil shipments account for 30 per cent of global edible oil exports. The oil is key to the production of food, as well as products such as deodorant, soap, shampoo, and lipstick.
Thailand’s economy is bracing for the impact of a 13-year high inflation driven by energy and food prices. The Commerce Ministry is now asking vendors to cap necessary products, including cooking oil, to alleviate the burden on Thai people.
Addressing a rise in palm oil prices, Department of Internal Trade deputy-general Chakra Yodmani said Thai palm oil exporters will benefit from higher rates.
“The ministry has closely monitored product prices in the market to ensure fairness to consumers,” Chakra said.
Source: https://www.thaienquirer.com/39847/thai-palm-oil-stocks-extend-gains-over-indonesias-ban-on-palm-oil-exports/