Indonesia Increased Palm Oil Exports to China

Indonesia’s palm oil exports increased in July on higher shipments to China and the Middle East, according to the Indonesian Palm Oil Association (Gapki). Total exports grew to 3.13 million MT from 2.77 million MT a month earlier, Gapki said.  The bigger surge in export was to the Middle East where it recorded 65% upturn month-on-month.  Shipments to China leaped 43%. 

Average crude palm oil price in July rose to $659/MT from $602 in June, which brought total value of exports to $1.87 billion from $1.62 billion, Gapki said. 

Increasing food demand from top importers India and China and a rally in soybean oil propelled 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, according to Darin Friedrichs, a senior analyst with StoneX Group Inc. in Shanghai.