The palm oil price has reached a record high in the last ten years, Report informs referring to The Wall Street Journal.
Palm oil futures on Bursa Malaysia, the Malaysian exchange, hit $961 per ton, a more than 100 percent growth since last spring. Malaysia and Indonesia are the primary producers and exporters of palm oil, 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 primary consumers, China and India, are increasing the demand for palm oil.
Besides, the decline in production resulted from a decrease in fertilization of fields because, at the beginning of the coronavirus pandemic, the market experienced a collapse in prices.