Thursday, 11 April 2013

Indonesia Palm Oil Exports Set for Biggest Fall in 2 Yrs

Palm Oil shipments from Indonesia probably slumped by the most in 2 yrs in March, slowing a decline in inventories at the world’s largest producer, as demand eased from China, the 2nd biggest buyer.

Sales plunged 19% to 1.65-M metric tons from 2.04-M tons a month earlier, according to the median of estimates from 4 plantation company executives and 1 analyst.

That would be the steepest drop since March 2011, data from the Indonesian Palm Oil Association, or Gapki, show.

Output fell 5% to 1.9 million tons, while inventories dropped 1.7% to 2.95 million tons, according to the median of estimates from three executives and one analyst.

Falling shipments from Indonesia may curb the decline in stockpiles, extending a 33% dive in prices in Kuala Lumpur in the past year.

Reserves may drop to 2.3-M tons this year from 2.5-M tons at the end of Y 2012, according to Derom Bangun, Chairman of the Indonesian Palm Oil Board.