Indonesia December CPO exports to fall slightly

JAKARTA: Indonesia’s crude palm oil (CPO) exports in December likely edged lower because of lower demand after an import tax hike started on edible oils in India, Indonesia’s biggest CPO importer, while output fell for a second month, a Reuters survey showed.

Exports of CPO from Indonesia, the world’s biggest palm oil producer, fell slightly to 2.51 million tonnes in December from 2.52 million in November, according to a median survey of two industry groups and a state palm oil research firm.

Shipments of the widely used vegetable oil are likely to decline after the import tax hike in India along with competition from Malaysia after it cut its palm oil export levy.

“Supply to India fell and Malaysia CPO exports without levy would cause Indonesian palm to be under pressure,” said Sahat Sinaga, executive director of the Indonesia Vegetable Oil Association (GIMNI).

Malaysia cut its CPO export tax in December and said earlier this month it would suspend the export tax for three months starting from Jan 8.

Meanwhile, Indonesia’s output of CPO in December fell to 3.52 million tonnes, according to the median estimate of the survey, down from 3.9 million in November.

Domestic CPO consumption was forecast at 972,000 tonnes in December, compared to 989,550 a month earlier.

CPO stockpiles in December are forecast to fall to 3.2 million tonnes from 3.6 million in the prior month.

The December palm survey was comprised of responses from the Indonesia Palm Oil Board, the Indonesian Oil Palm Research Institute and GIMNI. — Reuters