Indonesia’s palm oil exports up 53% in May

Indonesia’s crude and refined palm oil exports in May rose 53% to 1.88 million tonnes from a year earlier, when 1.23 million tonnes were exported, as the tropical oil was sold at a significant discount to its rivals, boosting demand from key buyers. In value terms, exports rose nearly 71% year-on-year to US$1.85 billion (RM7.76 billion).

The surge in exports from Indonesia, the world’s largest palm oil producer, is expected to reduce inventories and support prices, which have fallen below soybean oil prices after trading above a premium earlier this year.

Indonesia exported 8.3 million tonnes of crude and refined palm oil in the January-May period, up from 8.01 million tonnes a year earlier.

The rise in exports in May was driven by strong demand from India and the subcontinent, as palm oil prices were significantly lower than soybean and sunflower oils, analysts said. Even in June, exports were strong, as palm oil prices were very competitive.

Indonesia has entered its peak production season, and the rise in exports will help reduce stockpiles in the country, analysts said.

Earlier, it was reported that Malaysia’s palm oil exports in May rose by 25% to an eight-month high.

Tags: Malaysia, palm oil