Fresh spike in the price of cooking oil a concern

Palm oil, the world’s most consumed cooking oil, climbed to yet another intraday record in Kuala Lumpur yesterday, buoyed by shipment restrictions in top grower Indonesia and a chronic worker shortage in Malaysia’s plantations.

KUALA LUMPUR: A fresh spike in cooking oil prices is increasing concerns that global food costs are heading for a record as drought curbs production in South America, a labour shortage stymies output in Malaysia and Indonesia limits exports to safeguard domestic supplies.

Palm oil, the world’s most consumed cooking oil, climbed to yet another intraday record in Kuala Lumpur yesterday, buoyed by shipment restrictions in top grower Indonesia and a chronic worker shortage in Malaysia’s plantations.

Soybean oil traded near the highest since June, while soybeans, from which the oil is derived, jumped to the strongest since May. Heat and drought have led to repeated reductions in estimates for soybean crops in top grower Brazil and in Argentina.