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Breaking News-RTRS-Indonesian palm exporters re-negotiating contracts after market fall, defaults minimal

Posted by Flora Sawita

JAKARTA, Aug 26 (Reuters) - Indonesian palm oil exporters are re-negotiating prices of export contracts signed before the sharp price fall and large-scale defaults are unlikely, the executive chairman of the country's leading palm oil industry body said on Tuesday.

Derom Bangun of the Indonesian Palm Oil Producers' Association said the country's overall palm oil exports were likely to rise by 10 percent in 2008, from last year's 13 million tonnes, despite the volatility in the market.

"Biodiesel producers are building up stocks now, after the market crash. If crude oil rises a bit more, biodiesel producers will find it profitable to resume production," Bangun told Reuters in an interview.

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