Indonesia’s Palm Oil Output Decline 5% in August 2018
Indonesia’s Palm Oil Output in August 2018 has declined 5% due to weather and farmers production pattern.
Indonesia’s Palm Oil Output in August 2018 has declined 5% due to weather and farmers production pattern. The Indonesian Palm Oil Association (Gapki) data showed that in August 2018, palm oil output reached 4.06 million tons, down 5% from 4.28 million tons in earlier month.
On its statement, Gapki said the weather and the low price have caused the quantity of palm oil harvests to drop. It caused the decline in palm oil production.
On the other hand, the output volume in January-August 2018 reached 30.67 million tons, 19% higher than same period last year at 25.85 million tons. High domestic stocks also influenced palm oil or fresh fruit bunches (FFB) trade in some places.
As the result, the price in August 2018 moved around US$542.50 to US$577.50 per metric tons, with average price at US$557.50 per metric tons. “This is the lowest price since January 2016,” Gapki’s Executive Director Mukti Sardjono said. ***
