Indonesia Palm Output Likely Rose in Sept as Harvest Season Starts - Reuters Survey
19/10/2016 (Reuters) - Indonesia's crude palm oil (CPO) output likely rose in September on the onset of the harvest season, while a rise in exports was also seen, according to a Reuters survey.
CPO production likely climbed by 2.4 percent to 2.9 million tonnes, according to the median estimate in a survey of three industry associations, a state palm research firm and one of Indonesia's largest planters.
There has been an increase in output for the fifth month as production at the world's top producer of palm oil steadily recovers from an after-effect of drought caused by the El Nino weather pattern.
"Production rose since impact from El Nino is lessening and we entered harvest season in September," said Fadhil Hasan, executive director, Indonesian Palm Oil Association (GAPKI).
The survey also showed that September exports of Indonesian CPO were seen at 2 million tonnes, up 14.9 percent from a month earlier. An increase in exports was helped by rising demand from China, Hasan said, due to traditional festivals.
Domestic consumption were seen between 926,700 tonnes to 1.033 million tonnes last month, compared to around 1 million tonnes in August.
Meanwhile, palm stock is seen rising slightly to 1.738 million tonnes from 1.7 million, the survey showed.
Previous GAPKI numbers showed the country exported 2.07 million tonnes of palm oil and palm kernel oil in August. Its September data is not yet available.
The September survey comprises responses from GAPKI, the Indonesia Palm Oil Board, the Indonesian Oil Palm Research Institute, and PT Sinar Mas Agro Resources & Technology Tbk
, one of Indonesia's largest listed palm oil companies.
Below is a table of the median responses to the Reuters CPO survey and GAPKI palm and palm kernel oil export data for 2015/2016 (in million tonnes).
Month Output Exports Inventories GAPKI export
data
September 2.900 2.000 1.738 --
August 2.833 1.740 1.700 2.07
July 2.802 1.875 1.875 1.60
June 2.464 1.798 1.712 1.78
May 2.188 1.919 2.100 1.76
April 2.132 1.928 2.250 2.09
March 2.150 1.895 2.592 1.74
February 2.300 2.010 3.633 2.29
January 2.440 2.005 2.025 2.10
2015
December 2.457 2.675 2.425 2.51
November 2.800 2.093 2.950 2.39
October 3.010 2.213 3.025 2.61
September 3.100 2.235 3.050 2.34
August 3.198 1.885 3.392 2.10
July 2.856 1.920 3.200 2.09
June 2.800 2.400 3.046 2.27
May 2.774 2.150 2.540 2.22
April 2.662 2.046 2.602 2.25
March 2.397 1.800 2.667 2.03
February 2.049 1.750 2.425 1.79
January 2.056 1.658 2.413 1.81