JAKARTA, June 28 (Reuters) - Crude palm oil shipments from the world's top producer Indonesia are being hit by dry weather conditions, with falling water levels on a river hampering transportation of the edible oil from West Kalimantan, an industry official said on Thursday.
Shipments from West Kalimantan province had been halved from the usual 100,000 tonnes per month, Steaven Halim, an official at the Indonesian Palm Oil Association (GAPKI) told Reuters.
Palm analysts said the transportation issues would have little impact on prices and supplies, but that it was worth keeping a close eye on the situation as it develops.
"Crude pal oil transportation has been affected by low water levels on the Kapuas river," Halim said. "The dry season has caused the level of the river to drop and several areas of the river cannot be passed by ships carrying crude palm oil."
He added that transferring the crude palm oil to trucks was expensive and problematic because of a shortage of vehicles.
Data on Indonesia from GAPKI showed that January to May palm exports totalled 7.37 million tonnes, with May shipments 7 percent lower versus April at 1.4 million tonnes.
This year total palm oil output from Southeast Asia's largest economy is expected to be between 23 million and 25 million tonnes, up at least 7 percent, according to industry estimates.
According to Rabobank, 78 percent of Indonesian palm oil production comes from Sumatra, with Kalimantan output accounting for 18 percent.
