India increased vegetable oil imports by 1.5% in July, primarily soybean, while palm oil supplies declined, adding to pressure on prices.

According to Reuters, in July, India increased its imports of edible oils by 1.5% compared to June to the highest level since November 2024 - 1.53 million tons, with soybean oil imports rising the most - by 38% to a 3-year high of 495 thousand tons. At the same time, palm oil imports decreased by 10% to 858 thousand tons, and sunflower oil - by 7% to 201 thousand tons.

Palm oil shipments fell in July as import contracts were cancelled after higher prices, while soybean oil shipments hit a 3-year high thanks to low prices and the delivery of shipments that had been held up at ports since June.

A reduction in palm oil supplies to India, the world's largest importer of vegetable oils, could lead to a build-up of inventories in major producers Indonesia and Malaysia, putting pressure on underlying Malaysian palm oil futures.

September palm oil futures on the Malaysian exchange yesterday already fell by 1.4% to $988/t, although in June, until India increased purchases, they were trading at $915-920/t.

In Brazil, soybean oil prices for August delivery decreased by $15-20/t to $1,115-1,120/t FOB, which will continue to promote active soybean oil exports and put pressure on sunflower and palm oil prices.

The price of soybean oil in Daylian (China) for August delivery remains low at $1,140-1,150/t due to large inventories, which allowed local processors to export the first batches of oil to India.

Prices for sunflower oil delivered to India remained at $1,220-1,225/t (CIF Mumbai) during the week, and prices in Ukraine were at $1,140-1,145/t delivered to Black Sea ports, while prices for Russian sunflower oil delivered in August decreased to $1,100-1,110/t FOB.

The 4% drop in oil prices in a week will continue to put pressure on vegetable oil prices, especially against the backdrop of increased supply of rapeseed oil in the EU and rising palm oil inventories in Malaysia and Indonesia ahead of the start of the sunflower harvest.