Indonesia's crude palm oil (CPO) output likely rose for a sixth month in October while exports were seen rising as buyers build up inventories. CPO production likely increased by 5.6 percent to 3.06 million tonnes, according to the median estimate in a survey of three industry associations and a state palm research firm.
Output steadily rose since May as the world's top producer of palm oil recovers from the after-effects of a drought caused by the El Nino. October exports of Indonesian CPO were seen at 2.23 million tonnes, up 11 percent from 2 million in the previous month.
"Previously, in August to September, they (buyers) were letting their stocks diminish. Now they have started to rebuild the stock," said Derom Bangun, chairman, Indonesian Palm Oil Board (IPOB). Domestic consumption was estimated to be between 897,000 tonnes and 937,000 tonnes, compared with 926,700 tonnes to 1.033 million tonnes in September. Meanwhile, domestic palm stock is seen building to 1.95 million tonnes from 1.74 million, the survey showed.
Comments
Comments are closed.