India’s palm oil imports rose 11.6% in May from the previous month to a four-month high as its discount on rival oils boosted purchases, a trade body said in a statement.
Higher palm oil purchases by India, the world’s largest importer of vegetable oil, could support benchmark Malaysian palm oil futures.
India’s palm oil imports surged to 763,300 metric tons, the highest level since January, according to the Solvent Extractors’ Association of India (SEA).
Soyoil imports dropped approximately 16% to 324,016 tons, while sunflower oil imports surged 75% to 410,727 tons, bringing total vegetable oil imports to 1.5 million tons, an increase of 16%, the SEA reported.
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Factors Affecting Soyoil and Sunflower Oil Prices
Soyoil prices have surged recently due to supply disruptions in leading producers Argentina and Brazil, while sunflower oil prices have increased due to declining supplies from the Black Sea region, according to B.V. Mehta, executive director of the SEA.
He noted that palm oil prices remained largely stable, making it an attractive option for Indian buyers.
According to the SEA, last month in India, crude palm oil was offered at approximately $951 per metric ton, including cost, insurance, and freight, while soyoil and sunflower oil were offered at around $1,000 and $987 per ton, respectively.
“As the discount on palm oil widens, it becomes increasingly attractive to Indian buyers. In June, India could purchase more than 750,000 tons,” said a Mumbai-based dealer with a global trading firm.
He noted that soyoil imports could drop below 300,000 tons in June due to prices rising by over $60 per ton in the past two weeks.
India primarily imports palm oil from Indonesia, Malaysia, and Thailand, while it sources soyoil and sunflower oil from Argentina, Brazil, Russia, and Ukraine.
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