Monday, February 4, 2008

Palm Oil Rises to Record as Indonesia Taxes May Tighten Supply

Indonesia's government, seeking to boost domestic cooking oil supply, said yesterday it would impose a 15 percent tax if palm oil exceeds $1,100 a metric ton, compared with 10 percent below that price. The vegetable oil jumped to a record 3,458 ringgit ($1,070) a ton today.

``All the vegetable oils are up -- governments will do something now,'' Ben Santoso, a plantation analyst at DBS Vickers Securities in Singapore, said by phone today.

This is a perfectly natural move for them to make, and it's going to hurt the US and Europe. Americans, in particular, are going to find out what Inflation is all about.

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