Indonesia's crude palm oil (CPO) output likely rose in March after falling for the previous three months, as better weather improved output, a Reuters survey showed. CPO production in Indonesia, the world's top producer of the widely used cooking oil, likely rose to 3.08 million tonnes in March from 2.80 million tonnes in February, according to the median estimate in a survey of two industry associations and a state palm research firm.

"CPO production in March started to show improvement due to good rain fall late in 2016 up to March," said Sahat Sinaga, executive director at the Vegetable Oil Industry Association. Meanwhile, Indonesian CPO exports were estimated to have dropped last month to 2.09 million tonnes, from 2.41 million tonnes in February.

Indonesian Palm Oil Association (GAPKI) data showed the country exported 2.53 million tonnes of palm oil and palm kernel oil in February. The group's March data is not yet available. Domestic use of the oil ranged between 823,000 tonnes and 900,000 tonnes, up from 800,000 tonnes and 845,000 tonnes in the previous month, according to the survey.

Domestic palm stockpiles rose to 2.3 million tonnes in March, up 2 million tonnes in February, according to the median responses in the survey. The March survey comprised responses from the Indonesia Palm Oil Board, the Indonesian Vegetable Oil Industry Association and the Indonesian Oil Palm Research Institute.

Copyright Reuters, 2017