India’s palm oil imports in June experienced a substantial 49% surge compared to the previous month, reaching their highest level in three months, as revealed by six dealers who spoke to Reuters. This surge was driven by buyers seizing the opportunity presented by a significant dip in prices, which had hit their lowest point in 28 months. Consequently, purchasers took full advantage of the favorable market conditions to ramp up their palm oil purchases.
The resurgence in purchasing activity from the largest global importer of vegetable oil is expected to bolster Malaysian palm oil futures and assist leading producers Indonesia and Malaysia in reducing their stockpiles. In June, India’s palm oil imports surged to an estimated 655,000 metric tons, marking a significant increase from the 439,173 metric tons recorded in May, as reported by industry dealers.
Due to the recent trend of palm oil trading at a higher price compared to soyoil and sunflower oil, the month of May witnessed the lowest imports since February 2021. This price disparity has encouraged buyers to transition towards the more affordable soft oils as a substitute for palm oil.
Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage and consultancy firm, explained that the decrease in imports during May, along with a subsequent price correction, motivated Indian buyers to boost their purchases in June.
Due to its affordability and efficient shipping times, price-sensitive Asian buyers traditionally depend on palm oil as their preferred choice.
The Solvent Extractors’ Association of India is expected to release its June data on vegetable oil imports by mid-July.
According to industry dealers, India witnessed a significant surge of 35% in soyoil imports in June, reaching 432,000 metric tons, compared to the previous month.
Rajesh Patel, the managing partner at GGN Research, an edible oil trader and broker, mentioned that the marginal price difference between soyoil and palm oil in recent months has prompted buyers to escalate their purchases of soyoil.
Sunflower oil imports in June plunged 36% from a month ago to 190,000 metric tons, dealers said.
India buys palm oil mainly from Indonesia, Malaysia and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.
