Indonesia's palm oil production and exports fell in October from the previous month following the peak of the harvest season, while domestic consumption rose on demand for biodiesel, according to the median results of a Reuters survey. Palm oil output fell to 3.99 million tonnes in October, from 4.25 million tonnes in September, according to a survey of two palm oil groups and a state palm research firm.
Production of palm oil in Indonesia, the world's top producer, typically peaks around September and slows down in the following months. Exports of the vegetable oil were seen at 3.03 million tonnes last month, down slightly from 3.06 million tonnes in September. Domestic use of palm oil was estimated at 1.24 million tonnes in October, up from 1.15 million a month earlier and the highest figure since Reuters began the survey in 2014.
Indonesia implemented a mandatory B20 biodiesel programme starting in September which is aimed at absorbing excess supply of palm oil, which is used as feedstock for the fuel's bio-content. By the end of October, palm oil stocks were estimated at 4.35 million tonnes, according to the survey, down from 4.80 million tonnes a month ealier.
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