27.02.2019 (Hellenic Shipping News Worldwide) - Indonesia’s palm oil output likely eased in January from a month earlier, in line with the vegetable oil’s production cycle, while exports were expected to have picked up slightly, according to a Reuters survey.

Palm oil output in top producer Indonesia declined 7.7 percent to 3.60 million tonnes from 3.90 million tonnes a month
earlier, according to the median results of a survey of two palm oil groups and a state palm research firm.

Production of the tropical oil typically falls during the first quarter of the year.

Exports were estimated at 3.04 million tonnes in January, compared with 2.90 million tonnes in December.

India, Indonesia’s top palm buyer, cut import taxes on crude and refined palm oil from January, easing pressure on shipments.

However, Indonesian palm oil is still taxed at a higher rate compared to Malaysian oil.

Indonesia on Saturday offered to open up its market for India’s sugar in exchange for a lower palm oil tax.

Meanwhile, the domestic use of palm oil was estimated atb1.18 million tonnes in January, compared with 1.38 million tonnes a month earlier.

By the end of January, palm oil stocks were estimated to have eased to 2.85 million tonnes from 3.43 million tonnes a month ago, according to the survey.

Survey results in million tonnes:

 Month                     Output          Exports  Inventories     GAPKI palm & kernel oils exports

 January                  3.600               3.045           2.853                                 --

 2018                                     

 December              3.900                2.900          3.434                               2.95

 November               3.979               3.000          3.900                              2.99

 October                  3.985               3.029          4.346                              3.14

 September             4.250                3.055          4.800                              2.99

 August                  4.006                2.827           4.638                             2.99

 July                       3.897               2.887           4.300                              2.81

 June                      3.452               2.477           4.335                              2.29

 May                      3.751                2.600          3.675                              2.14

 April                      3.650                2.650          3.550                              2.22

 March                   3.335                2.500           3.528                              2.40

 February               3.490                2.480           3.530                              2.37

 January                 3.586                2.737           3.701                              2.74

Source: Reuters (Writing by Fransiska Nangoy; Editing by Subhranshu Sahu)