International Agriculture News

Global palm oil output to rise by nearly 2.5 mil T in 2019

Global palm oil output will climb by nearly 2.5 million tonnes in 2019, although growth will slow in top producer Indonesia, industry analyst James Fry said on Friday.

“Crude palm oil production will revive outside Indonesia in 2019, but Indonesian growth will slow,” Fry said in a presentation at an industry conference on the Indonesian island of Bali.

Robust output in Indonesia has this year helped push up global production of the vegetable oil by an estimated 4 million tonnes.

“I think growth will be significantly slower for Indonesia, I think it is very hard to have 2 years of such rapid (growth),” Fry said.

Malaysian palm oil stockpiles will peak by year-end, and are seen dropping by 750,000 tonnes between December and June, said Fry, chairman of commodities consultancy LMC International.

As inventories drop, the Malaysian palm oil price is seen at RM2,450 (US$587) per tonne by June, with Indonesian prices at US$555 per tonne.