The Indonesian Palm Oil Producers Association (Gapki) predicts that crude palm oil (CPO) production in 2016 could rise to 35 million tons next year from this year’s target of 25.7 million tons. Gapki Executive Director Fadhil Hasan said, about 22 million tons of 2016’s production for exports and 13 million tons for domestic consumption.
By October this year, Indonesia had exported 21.5 million tons of CPO. In November and December, the figure is expected to increase to 25.7 million tons from last year’s production of 21.7 million tons. He estimates that CPO prices in 2016 would be around $580 to $600 per ton. Meanwhile, leading industry analyst James Fry sees CPO prices could rise to $650-$675 per ton by mid-2016 as top producer Indonesia uses more palm-based biodiesel, and climb higher to $800 if El Nino hits output. (*)