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India's palm oil imports in June are expected to jump 46% from the previous month to the highest level in three months, as buyers take advantage of the fall in prices to the lowest level in 28 months to increase purchases, five traders told Reuters.
A rebound in purchases from the world's biggest vegetable oil importer would support Malaysia's palm oil futures and help top producers Indonesia and Malaysia cut inventories.
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India's palm oil imports rose to 640,000 tonnes in June from 439,173 tonnes in May, according to traders' average estimates.
May purchases were the lowest since February 2021 as tropical oil began trading at a premium to soybeans and sunflower oil in recent months, prompting buyers to switch to cheaper light oils.
The recent price correction has made palm oil competitive again and encouraged buyers to increase purchases for shipments in June, said Rajesh Patel, managing partner at GGN Research, an edible oil broker and trader.
Price-sensitive Asian buyers often turn to palm oil because of its low cost and fast shipping times.
India's soybean oil imports in June are expected to jump 40% from the previous month to 445,000 tonnes, according to traders.
Buyers increased soybean oil purchases in May for shipments in June as palm oil was trading at a premium, said Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage and consultancy firm.
The country's sunflower oil imports in June are expected to fall 19% from the previous month to 240,000 tonnes, traders said.
India buys palm oil mainly from Indonesia, Malaysia and Thailand, while it imports soybean oil and sunflower oil from Argentina, Brazil, Russia and Ukraine.
Source: Rajendra Jadhav | Notícias Agrícolas
