Sep 22 palm oil imports jump to 1-yr high of 1.2 million tonnes

  • India’s imports of palm oil jumped in Sep 22 to their highest in a year, boosted by strong demand for the tropical oil ahead of the festival season and a steep discount to rival oils, six dealers told Reuters.
  • Greater buying could help top producer Indonesia cut swelling inventories and support benchmark Malaysian palm oil prices, which have nearly halved from this year’s record highs.
  • The Sep 22 imports jumped 21% m/m to 1.2 million tonnes, the highest since Sep 21, the average estimate from six dealers with trading firms showed.
  • “Palm oil was much cheaper than other edible oils,” said Rajesh Patel, managing partner at GGN Research. “It was natural for refiners to increase buying.”
  • Palm oil is nearly USD300 cheaper than rival soyoil for Sep 22 shipments as Indonesia was trying to reduce its stockpile, dealers said.
  • Even in Oct 22, India’s palm oil imports will stay robust, at about a million tonnes, as its steep discount persists and festivals fuel demand strong, a Mumbai-based dealer with a global trading firm said.
  • Crude palm oil is being offered at USD855 a tonne, including cost, insurance and freight (CIF) in India for Oct 22 shipments, versus USD1,207 for crude soyoil, the dealers said.
  • The Solvent Extractors’ Association of India, a trade body based in Mumbai, is likely to publish its Sep 22 import data in the middle of Oct 22.
  • Soyoil imports in Sep 22 rose 10% m/m to 270,000 tonnes, while those of sunflower oil jumped 22% to 165,000 tonnes, the dealers said.
  • Sunflower oil imports were rising as its premium over rival soyoil has narrowed after supplies from top exporter Ukraine resumed since Aug 22 through a U.N.-brokered corridor, said Sandeep Bajoria, chief executive of leading broker Sunvin Group.
  • 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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