Indonesia palm oil shipments set to rise 9%

JAKARTA: Palm oil shipments from Indonesia, the world’s largest producer, are poised to advance 9% this month as importers increase purchases before the Muslim fasting season of Ramadan starts in July.

Exports may gain to 1.63 million from 1.49 million tonnes in April, according to the median in a Bloomberg News survey. Production will increase to 2.1 million from 1.9 million tonnes, while stockpiles were little-changed at 1.85 million tonnes, the survey showed.

Five plantation and refining company executives contributed to the output survey and four gave estimates for exports and inventories.

Prices have fallen 15% from a 13month high in April on concern that demand in China, the biggest consumer of cooking oils, may weaken as the economy slows, and as Europe’s debt crisis worsens. — Bloomberg