JAKARTA: Indonesia, the world's top producer of palm oil, was expected to have produced and exported less of the vegetable oil in December as harvest continued to ease from the peak and demand shifted, according to a Reuters survey.
Palm oil output fell to 3.90 million tonnes in December, from 3.98 million tonnes a month earlier, according to the median results of a survey of two palm oil groups and a state palm research firm.
Harvests in Indonesia typically peak around September and ease towards the end of the year.
Exports of palm oil were estimated 2.90 million tonnes in December month, compared with 3 million tonnes in November.
India, the world's top vegetable oil buyer, was suspected to have shifted some of its palm oil purchases to Malaysia from Indonesia last month, according to one of the survey respondents.
Malaysia's official data showed a 0.6 percent monthly increase in December palm oil shipments. India has cut import tax on palm oil from Southeast Asia this month, which is expected to help increase exports in January. Malaysian refined palm oil will now be taxed at 45 percent, while Indonesia and the rest will attract a 50 percent tax.
Meanwhile, Indonesian domestic use of palm oil was estimated at 1.38 million tonnes in December, compared with 1.37 million a month earlier. Domestic consumption of palm oil in recent months has been supported by mandatory biodiesel use.
By the end of 2018, palm oil stocks are estimated to have eased further to 3.43 million tonnes, from 3.90 million tonnes a month earlier, according to the survey.
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