RI palm oil 'to rise to 7.3m in 2001'<\/p>\n
KUALA LUMPUR (Dow Jones): Indonesia will produce 7.3 million
\nmetric tons of palm oil in 2001, up 12.3 percent from an
\nestimated 6.5 million tons this year, Derom Bangun, chairman of
\nthe Indonesian Palm Oil Producers Association said.<\/p>\n
In an interview with Dow Jones Newswires, Bangun said the
\nincrease will come mainly from new plantations coming under
\nharvesting next year. Indonesia is estimated to have more than
\n200,000 hectares of oil palm maturing in 2001.<\/p>\n
Bangun said he expects a 5 percent to 8 percent rise in palm
\noil prices in the coming months because of a slow down in
\nproduction in December and January, but prices will stagnate once
\nnew Indonesian oil enters the market.<\/p>\n
\"Next month, there will be many holidays when harvesting will
\ncompletely stop. That may affect production in the short term,\"
\nhe said, adding most plantations will stop regular operations
\nfrom Dec. 23 to Jan. 3 because of a series of holidays.<\/p>\n
\"I expect a similar pattern this year as in 1986,\" he said
\nabout the possibility of a recovery in prices. According to him,
\npalm oil prices were at their lowest in the middle of 1986, then
\nrecovered by the end of the year and remained firm until March
\n1987, but stagnated again after that.<\/p>\n
\"We will probably see the same thing this time. There may be a
\nrecovery in the coming months, but prices will flatten out by
\nApril,\" he said.<\/p>\n
He said the average price in 2001 is likely to be lower than
\nthis year, because prices were still high in the beginning of
\n2000.<\/p>\n
The price of crude palm oil is expected to average $250 a ton
\nin 2000, down from about $380\/ton in 1999.<\/p>\n
Bangun said he expects a 5 percent to 8 percent rise in palm
\noil prices in the coming months because of a slow down in
\nproduction in December and January, but prices will stagnate once
\nnew Indonesian oil enters the market.<\/p>\n
\"Next month, there will be many holidays when harvesting will
\ncompletely stop. That may affect production in the short term,\"
\nhe said, adding most plantations will stop regular operations
\nfrom Dec. 23 to Jan. 3 because of a series of holidays.<\/p>\n
\"I expect a similar pattern this year as in 1986,\" he said
\nabout the possibility of a recovery in prices. According to him,
\npalm oil prices were at their lowest in the middle of 1986, then
\nrecovered by the end of the year and remained firm until March
\n1987, but stagnated again after that.<\/p>\n
\"We will probably see the same thing this time. There may be a
\nrecovery in the coming months, but prices will flatten out by
\nApril,\" he said.<\/p>\n
He said the average price in 2001 is likely to be lower than
\nthis year, because prices were still high in the beginning of
\n2000.<\/p>\n
The price of crude palm oil is expected to average $250 a ton
\nin 2000, down from about $380\/ton in 1999.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-palm-oil-to-rise-to-73m-in-2001-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}