Palm oil production in Indonesia, the world's top producer of the vegetable oil, rose in September buoyed by peak harvest season, while demand from top buyers boosted exports, according to a survey by Reuters.
Palm oil output rose to 4.25 million tonnes last month from 4.01 million in August, according to a survey of a palm oil group, a state palm research firm and a senior industry expert.
Exports of the vegetable oil were seen at 3.06 million tonnes in September from 2.83 million in August. Respondents said demand from top importer India is seen helping boost shipments, while Indonesian exporters are expected to sell their products at a lower price in September.
Meanwhile, Indonesia's implementation of mandatory use of B20 programme, which uses palm oil for its bio-content, has helped domestic consumption of the oil to increase to 1.12 million tonnes last month from 1.05 million tonnes in August, according to the survey.
By the end of September, palm oil stocks were estimated at 4.80 million tonnes, up from 4.64 million tonnes in the previous month.