MarketsFarm — Indonesia, the world’s largest producer of palm oil, is forecast to see a three per cent rise in production in 2023-24, according to the U.S. Department of Agriculture’s Foreign Agricultural Service post in Jakarta.
The country’s USDA post anticipates 46 million tonnes of palm oil production, which would be up from 44.7 during the current marketing year.
The estimate assumes no significant weather events through the remainder of 2022-23. However, a developing El Nino weather pattern for the second half of 2023 could lead to dryness in Indonesia, which would hamper fruit setting and flowering, while lowering palm oil output.
Indonesian palm oil exports are forecast at 28.5 million tonnes in 2023-24, which would be up by only 100,000 tonnes from the current marketing year, with India, China, and Pakistan the major customers.
