May 12, 2015 / 7:56 AM / 4 years ago

Indonesia April crude palm oil output seen up 11 pct m/m -Reuters survey

* Indonesia produced 2.662 mln T CPO in April -median
estimate
    * Exports seen at highest since at least August last year

    By Michael Taylor
    JAKARTA, May 12 (Reuters) - Indonesian crude palm oil (CPO)
output likely rose 11 percent in April to its highest since
September, a survey of leading industry officials showed, as
trees entered a stronger period in the production cycle.
    A rise in supply from the world's No.1 producer of the
tropical oil could weigh on benchmark palm prices 
currently trading near five-week peaks at 2,196 ringgit ($606)
per tonne. 
    Indonesia produced 2.662 million tonnes of CPO in April, the
median estimate in a Reuters survey of four Indonesian industry
officials and plantation companies showed, versus 2.397 million
tonnes in March. 
    "We have seen similar rises in Malaysia also," said Pawan
Kumar, analyst at Rabobank International. 
    "We saw very subdued production in the last six months - the
production cycle was turning towards a better production month
(in April) ... It's more to do with the biological cycle of the
trees."
    Malaysian palm oil stocks in April rose to a five-month high
as accelerating crude palm oil output offset weaker exports,
data from an industry regulator showed on Monday.
 
    The median estimate for Indonesian CPO exports in April
climbed to the highest level since at least August at 2.046
million tonnes, versus 1.8 million in March.
    Indonesian palm oil was more attractive to buyers after
Malaysia, the second-largest palm grower, raised its palm oil
export tax for April to 4.5 percent from zero. 
    Indonesian palm also benefited from delays in government
plans to impose a levy on CPO exports, and due to lower rapeseed
output in India, the world's top palm buyer. 
 
    The survey pegged Indonesian palm stocks at 2.602 million
tonnes for April, compared with 2.667 million in March.
    "Although the oil is still in Indonesia, you must consider
what stocks are for sale - it's already reserved for biodiesel,"
said Derom Bangun, chairman at the Indonesian Palm Oil Board
(IPOB), referring to new biodiesel mandates announced by the
Indonesian government in recent weeks.
    Domestic consumption was estimated to range between 550,000
and 650,000 tonnes.
    The Indonesian Palm Oil Association (GAPKI) publishes
monthly data provided by a professional surveyor, which showed
March exports at 2.03 million tonnes. 
    The Reuters survey includes contributions from the IPOB,
GAPKI, the Indonesian Vegetable Oil Industry Association and PT
Sinar Mas Agro Resources & Technology, one of the
largest listed palm companies.
    
    Below is a table of median Reuters CPO survey results and
GAPKI palm & kernel oils export data for 2014/2015 (forecasts in
million tonnes). 
        
 Month      Output   Exports   Inventories   GAPKI export data
 
 April      2.662    2.046       2.602          ----   
 March      2.397    1.800       2.667          2.03
 February   2.049    1.750       2.425          1.79
 January    2.056    1.658       2.413          1.81
 ----------------------------------------------------
 December   2.165    1.837       2.325          1.97
 November   2.306    2.100       2.225          2.26
 October    2.385    1.820       2.378          2.47
 September  2.675    1.750       2.500          1.70
 August     2.750    1.720       2.575          1.72
 
($1 = 3.6220 ringgit)

 (Editing by Joseph Radford)
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