02.09.2019 (Hellenic Shipping News Worldwide) - Indonesia’s palm oil production and exports in July are likely to shrink from a month earlier, a Reuters survey of industry groups and researcher showed.

Output of palm oil from Indonesia, the world’s top producer, likely dropped to 4.43 million tonnes in July, from 4.54 million tonnes in June, according to a survey of two palm oil industry groups and a state palm oil research firm.

“Production fell because there are lots of fresh fruit bunches that were not harvested by farmers due to low price,” said Sahat Sinaga, executive director of Indonesia’s Vegetable

Oil Association.

Exports of palm oil were estimated at 2.69 million tonnes, a slight decline from 2.8 million tonnes in June. While domestic consumption, driven by usage in food and biodiesel mandatory programme seen at 1.55 million tonnes, slightly lower from a month earlier at 1.6 million tonnes.

At the end of July, domestic stockpiles of palm oil are estimated at 3.14 million tonnes, the highest level this year, according to the survey.

Data from Indonesia’s largest palm oil association GAPKI showed palm oil stockpile at the end of June came in at 3.55 million tonnes. GAPKI’s data for July is not available as yet.

Survey results in million tonnes:

 Month                 Output      Exports     Inventories      GAPKI palm & kernel oils exports

 July                     4.430         2.690        3.140                       --

 June                    4.539         2.800        2.949                     2.17

 May                     4.600         2.800       2.810                     2.40

 April                    4.420          2.910       2.510                     2.03

 March                 3.950          2.930       2.400                     2.78

 February             3.800          2.880       2.733                     2.77

 January              3.600          3.045       2.853                      3.10

 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 (Reporting by Bernadette Christina, Editing by Sherry Jacob-Phillips)