March 4, 2004
Indonesia Crude Palm Oil Output Forecast Up In 2004
Indonesia is expected to produce 10.60 million metric tons of crude palm oil in 2004, Tan Siauw Liang, senior managing director of Sinar Mas' Agribusiness Division, said Thursday.
Speaking at the annual palm and lauric oils price outlook conference organized by the Malaysia Derivatives Exchange, or MDEX, Tan said Indonesia produced 9.8 million tons of CPO in 2003.
He didn't give a reason for the expected rise in production, but Indonesia, the second largest palm oil producer in the world after Malaysia, has been gradually boosting its output following a steady increase in acreage.
Tan predicted CPO prices will range between $450/ton and $510/ton, free on board Belawan, in the first quarter of 2004.
Prices will drop to $425/ton-$480/ton in the second quarter and $400/ton- $430/ton in the third quarter, because of the arrival of South American soyoil into the global market, he said.
He predicted palm oil prices will move in the $420/ton-$470/ton range in the last quarter of 2004.
Sinar Mas is one of the largest plantation companies in Indonesia.