Indonesia's palm oil production and exports in November are expected to fall from the previous month while biodiesel usage continues to support domestic demand, according to the results of a Reuters survey. Palm oil output fell slightly to 3.98 million tonnes in November, compared to 3.99 million tonnes in October, according to the median results of a survey of two palm oil groups and a state palm research firm.
Exports from Indonesia, the world's top exporter of the vegetable oil, were seen at 3 million tonnes in November, slightly lower than 3.03 million tonnes in October. Vegetable oils buyers were on "wait and see" mode, according a survey respondent, due to uncertainties linked to the trade dispute between the US and China which has resulted in stockpiles of rival soybean oil building in the US
Domestic use of palm oil was estimated at 1.37 million tonnes in November, up from 1.24 million a month earlier, a record for the survey that Reuters started in 2014. Palm oil consumption is rising as Indonesia implemented the mandatory use of biodiesel fuel starting in September. By the end of November, palm oil stocks are estimated to have eased to 3.9 million tonnes, from 4.35 million tonnes a month earlier, according to the survey.
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