20 September 2018
Bloomberg Indo SND August
Bloomberg Indonesia Palm oil supply and demand August 2018
Indonesia palm reserves seen falling on output, biofuel demand: Bloomberg
Palm oil inventories in Indonesia probably dropped for the first time in six months as production in the world’s largest grower fell and demand for biodiesel advanced.
Stockpiles declined 1.2 percent from a month earlier to 4.84 million metric tons in August, according to the median of six estimates from analysts and plantation executives compiled by Bloomberg.
That would be the lowest since May, data from the Indonesian Palm Oil Association showed.
Domestic consumption climbed 8.9 percent to 1.1 million tons, while production fell 3 percent to 4.15 million tons, according to the survey. Benchmark palm oil futures in Malaysia may find some support, after falling about 14 percent this year on concerns about demand in top buyers India and China as well as rising supplies in Indonesia.
A move by President Joko Widodo’s government this month to expand its B20 biofuel mandate to cover railways and electricity generators may also help the market.
Exports probably increased 0.7 percent to 2.83 million tons, the survey showed.
A weaker rupiah helped bolster shipments to India, said Sathia Varqa, owner of Palm Oil Analytics in Singapore.
Exports to the Middle East, particularly Iran, are seen rising ahead of planned U.S. oil sanctions against the country in November, he said.