As food commodity prices surge at the fastest pace in a decade, experts are warning that policymakers in Asia and elsewhere will soon have to grapple with urgent questions about the use of biofuels. Countries around the world, from the United States, China, Malaysia and Indonesia all have what is known as a biofuel mandate – where the government requires.
That s according to Oil World executive director Thomas Mielke commenting on the growing global shortage in cooking oils and subsequent sky rocketing prices.
In the physical market, Malaysia’s crude palm oil (CPO) price rose to RM8,400 per tonne, while the CPO futures (FCPO) spot-month contract spiked to RM8,757 per tonne.
Pressure on global agriculture markets is growing as the Russia-Ukraine conflict enters its third week as prolonged hostilities could force grain and oilseed buyers that rely on the two major Black Sea producers to look elsewhere for their supplies. The disruption of supplies from the region have given rise to concerns over food inflation, especially .