Indonesia’s palm oil exports to rebound in April – forecast

Palm oil exports from Indonesia, the world’s biggest exporter, are expected to rebound in April after shipments in March and February fell below the monthly average for the past year, the trade ministry said.

According to the ministry, palm products exports totaled 1.3 million tons in February, while exports totaled about 885,000 tons from March 1 to 27, below the average of 1.97 million tons shipped from February 2023 to March.

“The situation is projected to be better in April and May and we hope this will increase domestic fulfillment,” ministry spokesman Bambang Wisnubroto said at the government’s weekly inflation meeting, which was broadcast online.

Bambang said exporters expect global demand for edible oil to improve in May and June.

Indonesia’s Domestic Market Obligation (DMO), or mandatory sales by exporters under the government’s low-cost vegetable oil program, stipulates export quotas for companies based on four times the supply.

According to the ministry, Indonesia’s palm oil exports fell 35% in February as demand was lower than for competing vegetable oils such as soybean and rapeseed.

Tags: palm oil, Indonesia