India reduced imports of sunflower oil by 36% in June

UkrAgroConsult

According to dealers, imports of sunflower oil to India in June fell by 36% from a month earlier to 190 thousand metric tons.

India’s palm oil imports jumped 49% in June from the previous month to the highest level in three months as buyers took advantage of falling prices to the lowest level in 28 months to increase purchases, six dealers told Reuters.

The resumption of purchases by the world’s largest importer of vegetable oil will support Malaysian palm oil futures and help leading producers in Indonesia and Malaysia reduce inventories.

India’s palm oil imports rose to 655,000 metric tons in June, up from 439,173 metric tons in May, according to dealers’ average estimates.

Imports in May were the lowest since February 2021, as tropical oil has started trading at a premium to soybean and sunflower oil in the past few months, prompting buyers to switch to cheaper soft oils.

But a decline in imports in May and a price correction prompted Indian buyers to increase purchases in June, said Sandeep Bajoria, CEO of Sunvin Group, a brokerage and consulting firm.

Price-sensitive Asian buyers typically rely on palm oil because of its low cost and fast delivery.

The Indian Vegetable Oil Producers Association is likely to release its June oil import data by mid-July.

According to dealers, India’s soybean oil imports in June increased by 35% from a month earlier to 432,000 metric tons.

The premium of soybean oil over palm oil has been marginal over the past few months, pushing buyers to increase purchases, said Rajesh Patel, managing partner at GGN Research, an edible oils trader and broker.

India buys palm oil mainly from Indonesia, Malaysia and Thailand, while soybean and sunflower oil is imported from Argentina, Brazil, Russia and Ukraine.

Tags: Ukraine, sunflower oil, prices, India, palm oil, imports