Imports of Palm oil by India increased by 3% in June from the previous month, reaching a six-month high, due to strong refinery demand for upcoming festivals and the oil's discount to rival products in negotiations, five traders told Reuters.
Rising palm oil purchases by India, which is the world's largest importer of vegetable oils, could support Malaysia's benchmark palm oil futures, which are trading near their highest level in more than two months .
Palm oil imports in June jumped to 788,000 tonnes, the highest since December, according to traders' estimates.
“Shoppers made purchases in anticipation of demand from the upcoming festival season. Palm oil was almost $80/ton cheaper than others, making it attractive,” said Sandeep Bajoria, CEO, Sunvin Group.
Bajoria mentioned that palm oil imports could increase to 850,000 tons in July.
Edible Oil Market Dynamics in India
Crude palm oil (CPO) imports are being offered at around $985 per tonne, including cost, insurance and freight (CIF), in India for delivery in August. In comparison, soybean oil and sunflower oil are being offered at around $1,065 and $1,050 per ton respectively, as reported by traders.
In June, India increased its sunflower oil imports by 14% from the previous month. Reaching a record 467,000 tons, according to dealers.
Rajesh Patel, managing partner at edible oil brokerage and trader GGN Research, said sunflower oil imports could have crossed 500,000 tonnes in June, but some ships were unable to dock at ports before the end of the month.
Soybean oil imports, on the other hand, fell by 16% in June, totaling 273,000 tonnes, according to traders. The Solvent Extractors Association of India (SEA) is expected to publish its data on June imports in mid-July.
The country recorded a 2% increase in edible oil imports, reaching 1.53 million tonnes in 10 months. Furthermore, India imports palm oil from Indonesia, Malaysia and Thailand and soybean and sunflower oil from Argentina, Brazil, Russia and Ukraine.
Source: Rajendra Jadhav | Notícias Agrícolas
