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Indonesia’s palm oil exports increased in July on higher shipments to China and the Middle East, according to the Indonesian Palm Oil Association.
Total exports rose to 3.13 million tons from 2.77 million tons a month earlier, the association, known as Gapki, said in a statement on Sunday. While shipments to China increased 43% month-on-month, those to the Middle East surged 65%.
With average crude palm oil price climbing to $659 per ton in July from $602 in June, Indonesia’s palm oil exports’ total value surged to $1.87 billion from $1.62 billion, Gapki said.
Increasingfood demand from top importers India and China and a rally in soybean oil fueled bullish sentiment and drove palm oil futures to advance to the highest level since January.
In China, the world’s biggest consumer of edible oils, people seemed to return to their normal activities, said Darin Friedrichs, a senior analyst with StoneX Group Inc. in Shanghai. “Since it’s impractical to leave the country to travel, everyone is spending money domestically,” he said in a recent note.
Consumption of the oil also climbed in Indonesia, driven by biodiesel. Domestic consumption increased 7% on a monthly basis to 1.43 million tons, according to Gapki.
Other highlights in July from Gapki:
- Palm oil output fell 6% to 4.23 million tons from June
- Palm oil stockpiles were down 8% to 3.62 million tons
- Gapki attributed the decreasing output and stockpiles to less fertilizer use as companies cut costs last year when the price was low
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