India’s palm oil and soybean oil imports surge in June on lower prices

India’s palm oil imports rose 49% mom in June to a three-month highest in June as buyers took advantage of a price drop to the lowest in 28 months to ramp up their purchases, six traders said.

A rebound in buying from the world’s largest vegetable oil importer would support Malaysian palm oil futures and help top producers Indonesia and Malaysia reduce inventories. According to traders’ average estimates, India’s palm oil imports rose to 655,000 tonnes in June, compared to 439,173 tonnes in May.

May imports were the lowest since February 2021 as tropical oil has traded at a premium to soybean oil and sunflower oil in recent months, prompting buyers to switch to the cheaper soft oils.

But lower imports in May and the price correction encouraged Indian buyers to increase their purchases in June, said Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage and consultancy.

Budget-conscious Asian buyers typically rely on palm oil due to its low cost and short delivery times.

The Solvent Extractors’ Association of India is expected to release its vegetable oil import data for June in mid-July.

According to traders, India’s soybean oil imports rose 35% mom to 432,000 tons in June compared to the previous month.

Soybean oil’s premium over palm oil has been negligible in recent months, urging buyers to increase their purchases, said Rajesh Patel, managing partner at GGN Research, a cooking oil trader and broker.

Sunflower oil imports fell 36% month-on-month to 190,000 tons in June, traders said.

India buys palm oil mainly from Indonesia, Malaysia and Thailand, while importing soybean oil and sunflower oil from Argentina, Brazil, Russia and Ukraine.

Related Articles

Back to top button