JAKARTA: Indonesia’s palm oil exports increased in July on higher shipments to China and the Middle East, according to the Indonesian Palm Oil Association.
Total exports rose to 3.13 million tonnes from 2.77 million tonnes a month earlier, the association, known as Gapki, said in a statement on Sunday. While shipments to China increased 43% month-on-month, those to the Middle East surged 65%.
With average crude palm oil price climbing to US$659 per tonne in July from US$602 in June, Indonesia’s palm oil exports’ total value surged to US$1.87bil from US$1.62bil, Gapki said.
Increasing food demand from top importers India and china and a rally in soybean oil fueled bullish sentiment and drove palm oil futures to advance to the highest level since January.
In China, the world’s biggest consumer of edible oils, people seemed to return to their normal activities, said Darin Friedrichs, a senior analyst with StoneX Group Inc in Shanghai.
“Since it’s impractical to leave the country to travel, everyone is spending money domestically, ” he said in a recent note.
Consumption of the oil also climbed in Indonesia, driven by biodiesel.
Domestic consumption increased 7% on a monthly basis to 1.43 million tonnes, according to Gapki. —– Bloomberg