As exports increase 3.7% to 1.7 million tons and rain disrupts production, palm oil reserves in Indonesia have fallen in October to the lowest point since June 2012. Futures in Kuala Lumpur are set for their first annual gain in three years as production in Indonesia and Malaysia is below analyst’s estimates. Wilmer International Ltd., the world’s top palm oil trader stated that stockpiles will likely continue to drop through the fourth quarter. . On November 1st prices reached their highest point since September 2012 and the upward trend of prices is expected to continue through January 2014. Despite predictions by the U.S. Department of Agriculture of a record 31 million tons, Indonesia’s Agriculture Minister stated that production may exceed 25 million tons this year. Wilmer, which sources 75% of its palm oil from Indonesia saw an 8% drop in production to 473,833 tons in the third quarter as output of fresh fruit bunches declined 10%.
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