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India's palm oil imports in March jumped 28% from an eight-month low reached in February, as discounts on the product prompted refiners to reduce purchases of soybean oil and sunflower oil, five traders told Reuters on Wednesday.
Rising palm oil imports by India, the world's biggest importer of vegetable oils, could help Malaysia reduce its stocks and support palm oil prices, traders said.
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India's palm oil purchases rose to 750,000 tonnes last month, up from 586,007 tonnes imported in February, according to an average of traders' estimates.
Palm imports increased in March, with the oil trading at a discount of more than $150 compared to soybean oil and sunflower oil in the previous month and in the first half of March, prompting refiners to increase purchases, said Sandeep Bajoria, chief executive officer of vegetable oil brokerage Sunvin Group.
Imports of soybean oil in March fell 27% to 259,000 tonnes, while sunflower oil fell 4% to 150,000 tonnes, the lowest level in five months, traders said.
Soybean oil imports fell as the oil's premium over palm and sunflower oil rose due to a drought in Argentina, said Rajesh Patel, managing partner at GGN Research.
Soybean production in Argentina, the world's biggest soybean oil exporter, could fall to 25 million tonnes in the 2022-2023 harvest, from an initial estimate of 48 million tonnes, as drought has reduced yields.
India buys palm oil mainly from Indonesia, Malaysia and Thailand, and imports soybean and sunflower oil from Argentina, Brazil, Russia and Ukraine.
Palm oil imports in April and May are likely to fall as the product's discount to rivals has fallen below $70 per tonne from $500 in the December quarter, said a Mumbai-based trader with a global trading house.
“Refiners are switching to sunflower oil. We can see a good amount of sunflower oil arriving in April and May,” said the dealer.
Source: Rajendra Jadhav | Notícias Agrícolas
