India has reduced its imports of vegetable oils by 3% in FY 2023/24, the prices of which have reached maximum levels
According to the SEA Association, in 2023/24, India reduced vegetable oil imports compared to the previous season by 3.09% to 16 million tons due to increased domestic production and lower demand due to rising prices, Business Standard reports.
Thus, the import of crude palm oil decreased from 7.59 to 7 million tons, palm olein - from 2.11 to 1.93 million tons, soybean oil - from 3.51 to 3.44 million tons, while the import of sunflower oil increased from 3 to 3.51 million tons. At the same time, palm oil imports rose by 60% in October compared to September, as refiners had to replenish stocks depleted by lower-than-usual imports after the holidays.
After the rapid growth of world prices for vegetable oils during the last eight weeks, there have been signs of a possible reversal to the bottom, - the experts of Oil World (Germany) report. Palm oil prices, the main driver of this growth, are likely to have peaked, but market uncertainty and other factors may correct the price situation.
The increase in the price difference between vegetable oils and diesel fuel has led to negative margins for biodiesel producers, which reduces demand for it. Almost 20% of vegetable oils are consumed by the biofuel industry, so further reductions in biodiesel production will have a significant impact on prices. Over the next 6 months, oil prices will depend on how Brazil and Indonesia fulfill their biodiesel mandates, although they will be supported by shortages of palm, sunflower and canola oil on the global market.
According to the forecast of Oil World, in 2024/25 MR, the total global production of sunflower and rape will decrease compared to the previous season by 12 million tons, and the volume of their processing - by 8 million tons. But despite significant soybean production volumes, soybean oil will not be able to compensate for the shortage of other oils, as low demand for soybean meal limits processing volumes.
