Palm Oil Exports From Top Grower Set to Soar 60% in Price Blow
- Supply surge to pressure market and help curb food inflation
- Indonesia needs to make a priority of cutting inventory level
Palm oil loaded into trucks at Tanjung Priok Port in Jakarta.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Palm oil shipments from Indonesia, the world’s biggest supplier, may surge more than 60% in second half of the year from the first six months as the government ramps up exports to reduce bloated inventories.
The country is likely to ship 17.3 million tons overseas from July to December, according to Sahat Sinaga, acting chairman of the Indonesia Palm Oil Board, which represents the industry. That compares with just 10.7 million tons in the first half, which was way below expectations because of an export ban imposed in late April and other curbs, he said in a phone interview on Tuesday.