Palm oil in the world market has risen in price at a record, writes The Wall Street Journal. Its price has reached its highest in the last 10 years.
Palm oil futures on Bursa Malaysia, the Malaysian exchange, hit $ 961 per tonne, up more than 100 percent since last spring. Malaysia and Indonesia are the main producers and exporters of these raw materials, with a combined market share of 84 percent.
Due to the coronavirus pandemic, both countries are experiencing a labor shortage, which has led to a reduction in production and, as a result, supply in the market. At the same time, the main consumers, China and India, are increasing the demand for palm oil.
In addition, the decline in production was the result of a decrease in fertilization of fields due to the fact that at the beginning of the coronavirus pandemic, the market experienced a collapse in prices.