Palm oil’s slump set to deepen after Indonesia lifts export ban

Workers load palm oil seeds onto a truck at the Namorambe plantation in Deli Serdang, North Sumatra. - AFP

JAKARTA, May 21 (Bloomberg): Palm oil has lost a major pillar of support after top producer Indonesia lifted a ban on exports, paving the way for prices to slump further as supply builds and demand languishes.

Futures were already lower this week on expectations Indonesia’s ban would be short-lived, and late Thursday President Joko Widodo said that exports can resume from May 23. This is after considering improvements in domestic supply and prices, as well as the 17 million workers in the industry, he added.