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Bloomberg reports that food prices, including bread, meat and cooking oils, have jumped worldwide, with restaurants and bakers cutting palm oil use and portion sizes. Palm and soybean oil prices reached records after Russia's invasion of Ukraine, and governments are curbing exports and controlling prices.
The article warns of hunger risk in import-dependent countries such as Yemen.
Record palm and soybean oil prices raise input costs for feed and food processors, and export curbs by governments further tighten available supply. Demand destruction could cap prices later, but near-term pressure on vegetable oil and protein-linked feed costs remains upward.
supplychainbrain.comBloombergApr 8, 2022After 62 past bullish geopolitics events, PALMOIL moved a median +2.5% over 5 sessions (74% higher; middle half -0.1% to +5.8%), and +4.0% over 20.
After 110 past bullish geopolitics events, SBO moved a median +1.8% over 5 sessions (65% higher; middle half -0.7% to +3.6%), and -0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
