Indonesia palm oil exports seen lower in May, stock rises

Indonesia’s palm output in May likely rose from a month earlier, while exports declined, according to a Reuters survey of industry groups and researcher.

Palm oil output in Indonesia, the world’s top exporter, likely rose to 4.6 million tonnes in May, up from 4.42 million tonnes in April, according to a survey of two palm oil industry groups and a state palm oil research firm.

Exports of palm oil, used in products ranging from food to soaps, were estimated at 2.80 million tonnes, down from 2.91 million tonnes a month earlier. Demand was “generally weak” in May, resulting in the decline, one of the survey respondents said.

Domestic consumption was seen rising to 1.5 million tonnes in May from 1.4 million tonnes in April.

At the end of May, palm oil stocks were forecast at 2.81 million tonnes, compared to 2.51 million tonnes a month earlier, the survey showed.

Data from Indonesia’s largest palm oil association GAPKI showed March’s exports at 2.78 million tonnes and palm stockpiles at 2.43 million tonnes at the end of the month.

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