Output of palm oil from Indonesia, the world's top producer of the vegetable oil, rose in September buoyed by peak harvest season, while demand from top buyers boosted exports, according to the median results of a Reuters survey. Palm oil output rose to 4.25 million tonnes last month from 4.01 million in August, according to a survey of a palm oil group, a state palm research firm and a senior industry expert.
It is the highest output since Reuters started the survey in 2014. Exports of the vegetable oil were seen at 3.06 million tonnes in September from 2.83 million in August. Respondents said demand from top importer India is seen helping boost shipments, while Indonesian exporters are expected to sell their products at a lower price in September.
"Production is high, suppliers are not holding up their prices," said Derom Bangun, chairman, Indonesian Palm Oil Board. Meanwhile, Indonesia's implementation of mandatory use of B20 programme, which uses palm oil for its bio-content, has helped domestic consumption of the oil to increase to 1.12 million tonnes last month from 1.05 million tonnes in August, according to the survey. By the end of September, palm oil stocks were estimated at 4.80 million tonnes, up from 4.64 million tonnes in the previous month.
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