Palm Oil Imports Surge to Four-Month High in May
India's Palm Oil Imports Reach Four-Month High
In May, India's palm oil imports increased by over 12 percent, reaching a four-month high, driven by a recent drop in prices. India's palm oil imports reached 0.769 million tonnes in May, the highest since January 2024. This surge in imports is attributed to high margins, prompting importers to buy refined palm oil. Compared to April 2024’s purchase of 0.124 million tonnes, May 2024 saw an increase to 0.214 million tonnes. Benchmark Malaysian palm oil futures saw a rise due to India's increased purchases, providing market support after hitting a three-month low last month.Crude Palm Oil Prices Competitive Against Rivals
The price of crude palm oil on a CIF basis for July delivery is around $0,95 per kg. In comparison, soybean oil and sunflower oil are priced at $1,03 and $1,04 per kg, respectively. Two months ago, crude palm oil had a premium over rival edible oils. Another dealer projected that palm oil imports would remain high in June, with an estimated 750,000 tonnes expected. Like palm oil, India’s sunflower oil imports jumped 74 percent to 0.408 million tonnes in May 2024.Soybean Oil Imports Decline Amid High Palm Oil Imports
Congestion at ports in April led to delayed berthing of ships in May, contributing to the high sunflower oil imports. In contrast, soybean oil imports fell by 16.5 percent to 0.322 million tonnes in May 2024. Due to high imports of palm and sunflower oil, the total import of edible oils in India increased by about 15 percent to 1.5 million tonnes in May. India typically imports palm oil from Indonesia, Malaysia, and Thailand, and soybean oil and sunflower oil from Argentina, Brazil, Russia, and Ukraine.India’s palm oil imports have surged due to a drop in prices, reaching a four-month high. Increased imports of sunflower oil also contributed to the rise in total edible oil imports, while soybean oil imports saw a decline. The competitive pricing of crude palm oil compared to other edible oils suggests continued high imports in the coming months.
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