India imported a record amount of edible oil in July
India increased its imports of edible oil to a record 1.76 million tonnes in July as refiners ramped up stockpiles ahead of the festivals, given volatile supplies from the Black Sea region and an increase in the discount on palm oil compared to soybean and sunflower.
The activation of imports by the world's largest buyer of vegetable oils will lead to a reduction in palm oil stocks in Malaysia and Indonesia, will support the prices of basic products and soybean oil, and will also contribute to the reduction of stocks in the Black Sea countries that produce sunflower oil.
According to the Producers Association of India (SEA), in FY2021/22 the country imported an average of 1.17 million tons of edible oils every month, in particular in June - 1.3 million tons. According to dealers' estimates, in July palm oil imports increased compared to in June from 683,133 thousand tons to a 7-month maximum of 1.09 million tons, sunflower - by 73% to a 6-month maximum of 330 thousand tons, while soybeans decreased by 22% to 340 thousand tons. Experts note that against the background of the war in In Ukraine, Indian importers maintain stocks at a high level to avoid a potential shortage. SEA may publish its own data on the import of vegetable oils in July in mid-August.
The reduction in the import of soybean oil in July is due to the delay in the unloading of ships in the port of Kandla.
India buys palm oil mainly from Indonesia, Malaysia and Thailand, and soybean and sunflower oil - from Argentina, Brazil, Ukraine and the Russian Federation.
October palm oil futures on Bursa Malaysia rose 45 ringgit/t, or 1.16%, to 3,917 ringgit/t, or $862.59/t.
On the Dalian exchange, soybean oil futures rose by 2.16%, palm oil futures by 2.35%, while soybean oil futures on the Chicago exchange fell by 0.11%.
Delivered sunflower oil prices to buyers remain at $965/t and demand is gradually increasing amid reduced EU olive oil production despite increased supply of new crop rapeseed oil.
