Indonesia's crude palm oil (CPO) output likely fell slightly in December, ending a seven-month run of gains in the world's top producer of the commodity used in everything from chocolate to biofuels, a Reuters survey showed.
A year-end decline in output would be in line with earlier predictions that production would likely peak in November after steadily recovering from drought brought on by an El Nino weather pattern in 2015 and the start of 2016. CPO production in the Southeast Asian nation likely eased to 3.22 million tonnes in December from 3.31 million tonnes in November, according to the median estimate in a survey of three industry associations and a state palm research firm.
Meanwhile, December exports of Indonesian CPO were forecast to have risen 7 percent to 2.38 million tonnes, from 2.23 million tonnes a month earlier.
Indonesian Palm Oil Association (GAPKI) data showed the country exported 2.41 million tonnes of palm oil and palm kernel oil in October. The group's November and December data is not yet available.
Domestic consumption was seen in a range of 900,000 tonnes to 1.10 million tonnes, while the survey median showed domestic palm stocks at 1.89 million tonnes. The December survey comprises responses from GAPKI, the Indonesia Palm Oil Board, the Indonesian Vegetable Oil Industry Association and the Indonesian Oil Palm Research Institute.
Comments
Comments are closed for this article.