Indonesia's crude palm oil output likely rose in July, a Reuters survey showed, as production started to increase in line with the typical rise that occurs at this point in the annual crop cycle. Crude palm oil (CPO) production in Indonesia, the world's top producer of the vegetable oil, likely rose to 3.5 million tonnes in July, compared to 3.2 million tonnes in June, according to the median estimate in a survey of two industry associations and a state palm research firm.
Exports of Indonesian CPO were estimated to have risen in July to 2.4 million tonnes, from 2.2 million a month earlier. The increase in exports is "in line with demand from India, China and even from Europe, continue to increase", said Hasan Hasril Siregar, a director at the Indonesian Oil Palm Research Institute. Domestic consumption likely declined to 848,500 tonnes from 937,500 tonnes in June, according to the survey median. Meanwhile, domestic stockpiles in July likely increased to 2.42 million in July from 1.30 million tonnes in the previous month.
Indonesian Palm Oil Association (GAPKI) data showed the country exported 2.13 million tonnes of palm oil and palm kernel oil in June. The group's official July data is not yet available. The July survey included responses from GAPKI, the Indonesia Palm Oil Board, and the Indonesian Oil Palm Research Institute.
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