Palm oil reserves seen slumping to 16-month low

Production will drop 8.3% to 3.54 million tonnes from an estimated 3.86 million tonnes in June, the survey showed.

JAKARTA: Palm oil stockpiles in Indonesia, the world’s top grower, will probably plunge to their smallest in 16 months by the end of July as production hits the lowest in more than two years after floods in major growing regions disrupted the harvest and delivery of fruit to mills.

Reserves are forecast to fall more than 10% from a month earlier to three million tonnes, according to the median estimate from five analysts and plantation executives compiled by Bloomberg.

Production will drop 8.3% to 3.54 million tonnes from an estimated 3.86 million tonnes in June, the survey showed.