Palm oil exports hit 2.92 million tons in July as China jacked up demand during the month

News24xx.com -  Palm oil exports hit 2.92 million tons in July, 15.87 percent higher than the previous month as China jacked up demand during the month, according to the latest Indonesian Palm Oil Producers Association (Gapki) data. 

Although exports dropped 9.32 percent on a yearly basis in July, Gapki executive director Mukti Sardjono said that on a monthly basis export increases were observed highest in China, India and Bangladesh.

“African swine flu reduced soybean [oil production] in China, resulting in [China] increasing palm oil imports from Indonesia by almost 50 percent in June,” he said in a statement received by The Jakarta Post.

However, American soybean producers present a new rival to Indonesian palm oil as the former ramps up exploration into new markets due to the closure of Chinese markets as part of the ongoing US-China trade war. 

The statement also noted production rose 8.5 percent month-to-month (mtm) to 4.31 million tons in July this year, despite being only 0.7 percent higher than the same month last year.

Meanwhile, domestic consumption hit 1.43 million tons in July, marginally higher by 0.3 percent mtm but significantly higher by 42.2 percent compared to the same month last year.

“American government solutions to reduce soybean stock, China’s success to solve African swine flu and higher pork prices and Indonesia’s implementation of the B20 and B30 [biofuel policies] shall determine the balance of the palm oil industry,” he said.

NEWS24XX.COM/PAR