Palm oil production in Indonesia in the 2023/24 marketing year could grow by 3% from season to season and end up at about 46 million tons. This forecast was released by specialists of the Foreign Agricultural Service of the U.S. Department of Agriculture (FAS USDA) in Jakarta.
The growth is predicted by experts, despite the fact that meteorologists expect the development of the El Niño weather phenomenon in the second half of the current calendar year.
Note that the increase in production may not be reflected in an increase in exports, as the country has begun to use more “palm” in the biodiesel sector.
In addition, the government of the country will require that all exports of crude palm oil from Indonesia, starting in June this year, be carried out exclusively through the futures exchange. This should make it possible to form its own benchmark price for the product, similar to benchmarks on the exchanges in Kuala Lumpur and Rotterdam. Now almost all deliveries of oil from Indonesia are made directly to buyers.