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Indonesia March Palm Oil Output Set to Fall For Seventh Month - Reuters Survey
Indonesia March Palm Oil Output Set to Fall For Seventh Month - Reuters Survey
20/04/2016 (Reuters) - Indonesia's crude palm oil (CPO) production is expected to fall to its lowest level in 13 months in March as a drought caused by an El Nino weather event continues to curb output, according to a Reuters survey.
March CPO production could fall for a seventh month in a row to 2.15 million tonnes, according to the median estimate in a survey of three industry associations and one of the country's largest planters.
That would be down from 2.30 million tonnes in February, and the lowest monthly output by the world's top palm oil producer since February 2015.
Indonesia's annual palm oil output is expected to fall to about 32.1 million tonnes this year, which would be the first decline since 1998, Indonesian Palm Oil Association (GAPKI) said last month.
"Production up to June will remain at low levels due to El Nino. Hopefully with the improvement in rainfall volumes through mid-year, palm fruit production will start to normalise and in August production can start taking off," said Sahat Sinaga of the Indonesia Vegetable Oil Industry Association (GIMNI).
Indonesia's CPO exports in March are expected to be 1.90 million tonnes, down from 2.01 million tonnes in February, the survey showed.
The Indonesian Estate Crop Fund Agency president director Bayu Krisnamurthi told reporters on Monday that the country exported 7.42 million tonnes of palm products in the January to March quarter.
Palm oil stockpiles are expected to drop to 2.59 million tonnes, from 3.63 million tonnes in February, according to the survey.
GAPKI said last month that Indonesia exported 2.29 million tonnes of palm oil and palm kernel oil in February. The group's data for March has not been released yet.
The Reuters survey comprises contributions from GAPKI, GIMNI, Indonesia Palm Oil Board and PT Sinar Mas Agro Resources & Technology Tbk, one of the 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 2016/15 (in million tonnes).
Month Output Exports Inventories GAPKI export data
March 2.150 1.895 2.592 -
February 2.300 2.010 3.633 2.29
January 2.440 2.005 2.025 2.1
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 2.1
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
March CPO production could fall for a seventh month in a row to 2.15 million tonnes, according to the median estimate in a survey of three industry associations and one of the country's largest planters.
That would be down from 2.30 million tonnes in February, and the lowest monthly output by the world's top palm oil producer since February 2015.
Indonesia's annual palm oil output is expected to fall to about 32.1 million tonnes this year, which would be the first decline since 1998, Indonesian Palm Oil Association (GAPKI) said last month.
"Production up to June will remain at low levels due to El Nino. Hopefully with the improvement in rainfall volumes through mid-year, palm fruit production will start to normalise and in August production can start taking off," said Sahat Sinaga of the Indonesia Vegetable Oil Industry Association (GIMNI).
Indonesia's CPO exports in March are expected to be 1.90 million tonnes, down from 2.01 million tonnes in February, the survey showed.
The Indonesian Estate Crop Fund Agency president director Bayu Krisnamurthi told reporters on Monday that the country exported 7.42 million tonnes of palm products in the January to March quarter.
Palm oil stockpiles are expected to drop to 2.59 million tonnes, from 3.63 million tonnes in February, according to the survey.
GAPKI said last month that Indonesia exported 2.29 million tonnes of palm oil and palm kernel oil in February. The group's data for March has not been released yet.
The Reuters survey comprises contributions from GAPKI, GIMNI, Indonesia Palm Oil Board and PT Sinar Mas Agro Resources & Technology Tbk, one of the 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 2016/15 (in million tonnes).
Month Output Exports Inventories GAPKI export data
March 2.150 1.895 2.592 -
February 2.300 2.010 3.633 2.29
January 2.440 2.005 2.025 2.1
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 2.1
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