Dry Weather Drags Indonesia Palm Reserves Near 8-Month Low
- Production probably declined for fourth straight month: survey
- Domestic consumption seen steady on strong biodiesel demand
Photographer: Joshua Paul/Bloomberg
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Palm oil stockpiles in Indonesia probably dropped to the lowest in eight months in December after dry weather curbed production in the world’s largest grower.
Inventories likely declined almost 13% from November to 3.49 million tons, according to the median of estimates from eight analysts and plantation executives compiled by Bloomberg. Although December stockpiles may have fallen to the lowest since April, they would be well above reserves of 3.26 million tons a year earlier, according to data from the Indonesian Palm Oil Association, or Gapki.