India plans to introduce a duty on imports of vegetable oils, which will limit the growth of prices

Reuters, citing its own sources, reported that the Indian government plans to increase the duty on imports of vegetable oils to protect its farmers from lower prices for oilseeds. Such a decision, which may be made in the coming weeks, will lead to a reduction in demand and supplies of palm, soybean and sunflower oil to the country.

amid rising oil prices, October futures for palm oil on the Bursa exchange in Malaysia for the week rose by 2.4% to 3920 ringgit/t or 906,8 $/t (+6% for two weeks), despite the slowdown in exports in August. According to the surveyors Societe Generale de Surveillance (SGS), Intertek Testing Services and AmSpec Agri Malaysia, for 1-25 August Malaysia reduced the export of palm oil by 14.1-14.9%.

the December futures for soybean oil in Chicago for the week rose by 8.2% to 930 $/t, fully recovering the monthly decline.

The sharp rise in prices is due not only to rising oil prices, but also to rumors about the intentions of the United States to limit imports of used vegetable oil (UCO).

According to Trading Economics, the average price of sunflower oil for delivery to buyers during the week increased by 2.3% to 928 $/t, but the demand prices for Ukrainian sunflower oil from EU buyers remained at 860-880 €/t or 930-970 $/t DAP Poland, Bulgaria and Italy.

Despite the early start of the harvest, the number of offers of sunflower on the market has not increased, so the increase in exports of sunflower oil is not expected to support prices. Most of the crushing plants are undergoing preventive maintenance and will start working actively in September, so we can expect the increase in sunflower oil supplies to the global market.

Tags: sunflower oil, soybean oil, prices, India, palm oil, edible oils, restrictions