Indonesia's Palm Oil Expotrs Up Due to El Nino

Jakarta (Antara Bali) - Indonesia's palm oil exports and prices have risen due to El Nino weather phenomenon that has hit the country.

"From October 2015, palm oil exports have increased by 11.6 percent to 2.61 million tons from 2.34 million tons in September 2015," the executive director of the Indonesia Palm Oil Association (GAPKI), Fadhil Hasan, said at a press conference here on Tuesday.

The average global price of Crude Palm Oil in October 2015 was up 9.7 percent, reaching US$578.2 per metric ton from US$526.9 per metric ton in September.

The increasing demand and global CPO price was also the result of haze that has disrupted harvest, making buyers carry out purchases before supply further thins out.

Seed oil stocks also dropped due to un-supportive weather conditions while demand for palm oil increased due to biofuel programs.

Fadhil said significant palm oil demand came from several countries in Africa, the US, China and India.

"African countries in October imported 259,000 tons, a 340 percent increase, compared to 58,930 tons a month earlier," he said.

Demand from the US, meanwhile, rose by 133 percent to 117,740 tons from 50,620 tons while demand from China increased by 36 percent from 278,990 tons in September to 378,970 in October.

Demand from Middle Eastern countries was up 21 percent on an average while India's demand went up by 11 percent.

Although demands from most countries increased, Fadhil said that from Pakistan and Bangladesh was down, respectively, by 54 and 34 percent.

With regard to price, he said based on price movement and appreciation of the rupiah and the Malaysian ringgit against the US dollar, GAPKI predicts the daily price of CPO in November 2015 will be in the range of US$555 and 580. (WDY)