MUMBAI: India’s palm oil imports in June are set to jump 46% from a month ago to their highest in three months as buyers took advantage of a dip in prices to their lowest in 28 months to increase purchases, five dealers told Reuters.
A rebound in buying by the world’s biggest vegetable oil importer would support Malaysian palm oil futures and help top producers Indonesia and Malaysia to trim inventories.
Palm oil imports by India rose to 640,000 tonnes in June, up from 439,173 tonnes in May, according to average estimates from the dealers.
Palm oil ends five-day rally on weak exports
May imports were the lowest since February 2021 as the tropical oil started trading at a premium to soyoil and sunflower oil over the past few months, prompting buyers to shift to the cheaper soft oils.
The recent price correction made palm oil competitive again and encouraged buyers to increase purchases for June shipments, said Rajesh Patel, managing partner at GGN Research, an edible oil trader and broker.
Price-sensitive Asian buyers typically rely on palm oil because of the low cost and quick shipping times.
India’s soyoil imports in June are set to jump 40% from a month ago to 445,000 tonnes, according to the dealers.
Buyers increased soyoil buying in May for June shipments as then 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 a month ago to 240,000 tonnes, dealers said.
India buys palm oil mainly from Indonesia, Malaysia and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.
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