India’s 74% increase in imports of sunflower oil in May led to higher prices in Ukraine
India in May increased imports of edible oils by 15% to 1.5 million tons compared to April, in particular palm oil – by 12.4% to a 4-month high of 769 thousand tons due to lower prices, and sunflower oil – by 74% to 408 thousand tons, as several ships due to the congestion of ports in April were unloaded in May. At the same time, imports of soybean oil decreased by 16.5% to 322 thousand tons.
According to dealers, the price of imported crude palm oil (CPO) is 948 $/t CIF (including cost, insurance and freight), while soybean oil is offered at 1028 $/t, and sunflower oil – at 1035 $/t CIF.
the Increase in imports of palm oil contributed to the growth of the margin in the purchase of refined palm oil, so that its imports in may increased compared to April from 124,2 to 214 thousand tons. Experts expect that in June India will import about 750 thousand tons of palm oil.
The data of the Indian Association of Manufacturers (SEA) on May imports will be released in mid-June. Recall that India buys palm oil mainly in Indonesia, Malaysia and Thailand, and soybean and sunflower oil in Argentina, Brazil, Ukraine and Russia.
Ukraine due to increased demand from India and Spain increased exports of sunflower oil in may by 13.7% to 714,3 thousand tons, the highest level since November 2020.
August futures for palm oil on the Bursa exchange in Malaysia yesterday fell by 3.83% to 3920 ringgit/t or $834/t following oil prices. This will increase the demand for palm oil and reduce the interest of buyers in sunflower oil.
According to Trading Economics, last week the average price of sunflower oil for delivery to buyers increased by 6.1% to 931 $/t (+7.5% for the month), but since Monday it decreased by 2.3% to 910 $/t under pressure from falling oil prices by 3.4% and palm oil by 2.6%.
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