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Data from Indonesia's statistics agency showed that the country's exports of crude and refined palm oil rose 53% in May compared with the same month last year, as the tropical oil began trading at a discount to competing oils, boosting demand from key buyers.
Indonesia is the world's largest palm oil producer, and the export surge is expected to draw down stocks and support prices, which recently fell below soybean oil prices after trading higher earlier this year.
According to the data:
The data also showed that Indonesia exported 8.3 million tonnes of crude and refined palm oil in the January-May period, compared with 8.01 million tonnes in the same period last year.
⚠️ Note: The agency's data does not include palm kernel oil, oleochemical products or biodiesel.
The Indonesian Palm Oil Association (GAPKI) usually releases its own data later, covering more products and with different export figures.
🔹 What drove May's jump?
Anilkumar Bagani, head of research at Indian vegetable oil trading firm Sunvin Group, said the increase was driven by strong demand from India and the Indian subcontinent, where palm oil prices were significantly lower than soybean and sunflower oil prices.
He added:
"Even in June, exports remained strong owing to the high price competitiveness of palm oil."
Palm oil mainly competes with soybean and sunflower oil from Argentina, Brazil, Russia and Ukraine.
🔹 Indonesia Enters Peak Production Season:
A global trader in New Delhi said the country has entered its peak production season, and that higher exports would help draw down stocks.
GAPKI data released last week showed that Indonesia's palm oil stocks rose 50% in April from the previous month to 3.04 million tonnes, the highest level since May 2024, as a result of lower exports.
Source: Reuters