India, the world's biggest importer of vegetable oil, is expected to buy higher volumes of soybean oil in 2024, while purchases of palm oil are likely to decline, a top trader said on Monday.
Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil consultancy and brokerage company, mentioned that India's soybean oil imports are expected to grow, reaching 4.3 million tonnes in the 2023/24 marketing year, compared to 3.5 million tons in 2022/23. On the other hand, a reduction in palm oil imports is expected, which should stand at 9.2 million tons in 2023/24, in contrast to the 10 million tons recorded in 2022/23, as stated by Bajoria on the sidelines of the Palm and Lauric Oils Price Outlook Conference 2024 event.
Additionally, negative palm oil refining margins, compared to positive soybean oil margins, have driven a shift from palm to soybean products in recent weeks, according to traders.
Drop in palm oil imports by India impacts stocks and market
India reduces palm oil purchases, maintaining high stocks in Indonesia and Malaysia, affecting benchmark futures.
On the other hand, Bajoria claims that Indian imports of sunflower oil will be stable, at around 3 million tons this year. The country's vegetable oil imports are expected to remain stable at 16.5 million tonnes in 2023/24, no change compared to the previous year.
“Overall, domestic production of vegetable oils will be around 10 million tonnes and imports will be 16.5 million tonnes. Therefore, total consumption will be around 26.5 million tons.”
In January, India's palm oil imports fell by 12% from the previous month, totaling 782.9/mt, the lowest in three months.
India buys palm oil mainly from Indonesia, Malaysia and Thailand, and soybean and sunflower oil from Argentina, Brazil, Russia and Ukraine.
Source: Danial Azhar | Agricultural News
