Palm oil shipments from Indonesia, the world’s largest producer, expanded to the highest level in seven months in July after India and countries in Africa increased purchases amid a decline in prices.
Exports rose to 1.84 million metric tons from 1.79 million tons in June, the Indonesian Palm Oil Association, known as Gapki, said in a statement today. That compares with the median of 1.8 million tons in a Bloomberg survey published on Aug. 18 and 1.6 million tons in July 2013.
Palm entered a bear market last month as favorable weather boosted prospects for the U.S. soybean crop, which is predicted by the U.S. government to be the largest ever. Both oils are used in foods. Futures in Kuala Lumpur dropped to the lowest since March 2009 today amid speculation that supplies will rise.
Palm oil for delivery in November fell as much as 2.3 percent to 1,954 ringgit ($618) a ton on Bursa Malaysia Derivatives before reversing to show a 0.6 percent gain by 4:27 p.m. local time. Prices declined 24 percent this year.
Exports to African countries jumped to 175,000 tons from 102,000 tons in June, Gapki data showed. Sales to India rose 2.7 percent to 407,790 tons, while shipments to China fell 27 percent to 138,000 tons, the data showed.