Indonesia’s palm oil output seen 3 pct lower in Sept – Reuters survey

Crude palm oil output in Indonesia, the world’s top producer, is expected to fall 3 percent in September, a survey of leading industry officials showed, easing due to dry weather conditions earlier in the year.

Palm production in Southeast Asia’s largest economy was seen at a median 2.68 million tonnes in September, according to a Reuters survey of four Indonesian industry officials and plantation firms, versus 2.75 million tonnes in August.

“You could argue that a drought in the early part of the year is having a slight effect,” said Chris de Lavigne, an analyst at Frost & Sullivan. “There was a slightly dry period in February which could be affecting the output right now.”»