Indonesia's Palm Oil Exports Slip 1.2% in February, but YOY Production Rises by 10.9%

MUMBAI, April 18 (Commoditiescontrol):Indonesia's palm oil exports fell by 1.2% in February, according to the Indonesia Palm Oil Association's (GAPKI) February supply and demand report. The report showed that the country exported 2.91 million tons of palm oil in February, down from 2.95 million tons in January. However, the exports were still 38.8% higher than in the same period last year, with China, Bangladesh, and Egypt showing the largest monthly increases. On the other hand, exports to India and Pakistan dropped by 41% and 45%, respectively.

The report also revealed that total palm oil production in Indonesia marginally decreased to 4.25 million tons in February from 4.26 million tons in January. This comes as Indonesian output has been in decline since October 2022, when production peaked at 5 million tons. However, on a yearly basis, palm oil production in February rose by 10.9%.

The report further stated that local palm oil consumption in Indonesia rose by 0.95% to 1.8 million tons in February. The food industry showed the biggest increase in consumption at 9,000 tons to reach 802,000 tons. Consumption from the oleochemicals and biodiesel sectors were at 185,000 tons and 816,000 tons, respectively.

Despite the slight dip in production, exports and higher local consumption caused a 14.8% drop in end-month stock levels to 2.64 million tons, a near four-year low. However, the report suggests that this drop in stock levels could put pressure on palm oil prices in the future.

Finally, several regions in Indonesia have started to enter the dry season, and the country's meteorological agency has predicted a minor El Nino event. The impact of these conditions on palm oil production and exports remains uncertain.

Overall, the data provided by GAPKI indicates that the palm oil industry in Indonesia is experiencing mixed trends, with declining exports to some countries but steady exports and higher local consumption. The dry season and potential El Nino could further impact the industry in the coming months.

(By Commoditiescontrol Bureau; +91-9820130172)