SINGAPORE (Bloomberg) -- One of the world’s most popular raw materials is as expensive as it’s been in eight years, a rally that points to higher food prices -- and backsliding on biofuel initiatives -- in the months to come.
The price of palm oil, an ingredient in about half of all supermarket goods, is up almost 70% since the year’s low in May.
Bad weather has disrupted the planting of rival oils, and the supply of palm is also tighter, the result of a shortage of migrant workers on Malaysia’s plantations.
At the same time, optimism about a coronavirus vaccine has improved economic forecasts and energized demand.
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