India is expected to import a record of edible oil after the lack of rain impacts production, according to expert Luiz Fernando Pacheco, analyst at T&F Consultoria Agroeconomic. According to him, this movement could make the price of grain rise a few cents on the CBOT, because it is a “non-China” demand.
“India's edible oil imports are expected to rise by 7.3% in 2019/20 to a record level, after weak monsoon rains reduced the productivity of summer crops such as soybeans and groundnuts, a top industry official said. Increased purchases by the world's largest edible oil importer could support palm oil prices, which are under pressure due to weak demand amid an expected increase in production,” he indicated.
Furthermore, the expert also says that the deficit in oilseed production will force India to import up to 16.1 million tonnes of edible oils in the new marketing year starting November 1, above the 15 million tonnes estimated for this year. , said Patel, who has been trading edible oil for over four decades. “Rainfall was scarce in the oilseed growing areas. This will reduce the production of groundnuts, soybeans and cotton,” said Govindbhai Patel, managing director of research firm GG Patel & Nikhil Research Company.
“The shortfall in oilseed production will force India to import up to 16.1 million tonnes of edible oils in the new marketing year starting November 1, up from the 15 million tonnes estimated for this year, said Patel, who trades oil edible for more than four decades. India imports more than two-thirds of its edible oil needs, up from a third two decades ago, as local production has failed to match growing demand in Asia's third-largest economy. Palm oil represents around two thirds of total imports”, concludes Pacheco.
Post: Marina Carvejani
Author: Leonardo Gottems
Source: agrolink
