WINNIPEG (MarketsFarm) — There’s to be a small increase in palm oil production in Indonesia in 2022-23, according to the U.S. Department of Agriculture’s attaché in Jakarta.
The USDA official pegged palm oil output to rise by 1.1 percent 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 the USDA official number of 44.5 million.
As well, estimates for 2021-22 marketing year exports increased 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, the lack of sunflower exports out of Ukraine due to the war could see more demand for Indonesian palm oil.
Domestic use 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 percent from the USDA official number. Total usage for 2022-23 is expected to push to 16.66 million tonnes.
Due to increased consumption, ending stocks for 2021-22 were lowered to nearly 6.18 million tonnes from the USDA’s 6.5 million tonnes and to about 5.52 million tonnes for 2022-23.
