MarketsFarm — There’s to be a small increase in palm oil production in Indonesia in 2022-23, according the U.S. Department of Agriculture’s attaché in Jakarta.
The attaché pegged palm oil output to rise by 1.1 per cent at 46 million tonnes due to favourable weather and higher prices for producers. Also, the attaché revised 2021-22 production, raising it one million tonnes from USDA’s official number of 44.5 million.
As well, the estimates for marketing year exports increased, with the attaché raising the 2021-22 figure by one million tonnes at 29 million. The projection for 2022-23 also went up by one million at 30 million tonnes, based on demand increasing as the world recovers from the COVID-19 pandemic.
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Also, it was noted, the lack of sunflower exports out of Ukraine due to the war could see more demand for Indonesian palm oil.
Domestic usage was increased as well, citing more palm oil being used for biofuel. Total domestic consumption for 2021-22 was at 16.3 million tonnes, up two per cent from USDA’s official number. Total usage for 2022-23 is expected to push to 16.66 million tonnes.
With more consumption, the attaché lowered ending stocks, with that for 2021-22 at nearly 6.18 million tonnes rather than USDA’s number of 6.5 million. The call for 2022-23 is lowered to about 5.52 million tonnes.
