22/12/2017 (The Star Online) - JAKARTA: Indonesia's crude palm oil (CPO) exports likely fell in November on weak demand from main markets such as India and China, while production edged lower, a Reuters survey showed on Thursday.

CPO output fell to 3.90 million tonnes in November, from 3.95 million tonnes in October, according to the median estimate in a survey of two industry groups and a state research firm.

The October output was the highest monthly figure since the survey began in 2014. Indonesia is the world's top producer of the widely used vegetable oil.

Derom Bangun, chairman of the Indonesian Palm Oil Board, noted a big drop in demand from Indonesia's top market India.

November exports were estimated to have fallen to 2.52 million tonnes in November from 2.75 million tonnes in October.

India's move to hike its palm oil import tax led a drop in November imports to the lowest in eight months.

Other markets were also showing weak demand, according to the Indonesian Oil Palm Research Institute.

"China will not be active until next year for Lunar New Year preparation. European markets and others were also sluggish," the institute said.

The Southeast Asian country exported 2.60 million tonnes of palm oil and palm kernel oil in October, data from the Indonesian Palm Oil Association (GAPKI) showed last week.

GAPKI data for November exports will be released in January.

Indonesia's domestic consumption was estimated at around 989,550 tonnes last month, compared to 985,000 in October.

The weaker exports have led to a stockpile build-up, with palm oil stocks at end-November estimated at 3.60 million tonnes, up from 3.14 million tonnes, the survey shows.

The November palm survey comprised responses from the Indonesia Palm Oil Board, the Indonesian Oil Palm Research Institute and Indonesia's Vegetable Oil Association.

- Reuters
Read more at https://www.thestar.com.my/business/business-news/2017/12/22/indonesia-nov-palm-oil-exports-likely-fell-on-weak-global-demand/#eMg9hEcUmHFWCcw1.99