Indonesia palm output seen extending growth in Nov: Reuters survey

[JAKARTA] Indonesia's crude palm oil (CPO) output likely rose by 8 per cent in November from a month ago, while exports fell slightly, a Reuters survey showed.

CPO production was forecast at 3.31 million tonnes from 3.06 million tonnes in October, according to the median estimate in a survey of three industry associations and a state palm research firm.

The forecast would mark a seventh consecutive month of rising output in November as good rains this year aided cultivation following last year's drought.

"In 2016, the peak of production is estimated to be between October and November. Production in some areas improved well, plus there are plantation areas that were expanded," said Derom Bangun, chairman of Indonesian Palm Oil Board (IPOB).

November exports of Indonesian CPO were forecast to edge lower to 2.22 million tonnes, from 2.23 million tonnes a month earlier.

Indonesian Palm Oil Association (GAPKI) data showed the country exported 2.41 million tonnes of palm oil and palm kernel oil in October. The group's November data is not yet available.

Domestic consumption was estimated at up to 1.05 million tonnes from as much as 937,000 tonnes in October. Meanwhile, domestic palm stocks were seen falling by 8 percent to 1.79 million tonnes, the survey median showed.

The November survey comprises responses from GAPKI, the IPOB, the Indonesian Vegetable Oil Industry Association and the Indonesian Oil Palm Research Institute.

REUTERS