India actively bought sunflower oil in May, and reduced palm oil imports to a 27-month low

In May, India continued to cut palm oil imports and increase purchases of sunflower and soybean oil amid lower prices.

According to local operators, in May palm oil imports decreased by 14% compared to April to a 27-month low of 441,000 tons, although in the first half of 2022/23 MR averaged 818,203,000 tons per month. At the same time, the import of soybean oil grew by 10% to 290,000 tons, and sunflower oil by 28% to 319,000 tons. The decrease in palm oil imports was caused by a sharp drop in the prices of sunflower oil compared to the prices of soybean and palm oil.

The Indian government lowered the base import price for crude palm oil from $988/t to $898/t, for refined palm oil from $1,020/t to $984/t, and for crude soybean oil from $983/t to $976 $/ton

Egypt's GASC planned to hold a tender for the purchase of vegetable oils on June 1, then postponed it to June 6, and now canceled it altogether.

July palm oil futures on Malaysia's Bursa exchange yesterday fell 2% to 3,316 ringgit/t or $720/t (-2.6% for the week) on forecasts of reduced demand and increased production. They were also supported by a 5% rise in oil prices on Monday.

July soybean oil futures on the Chicago Stock Exchange rose 3.2% to $1,120/t yesterday (+10% for the week) on forecasts of increased demand for biodiesel in the US.

Prices for sunflower oil with delivery to buyers for the week fell by another $30-35/t to $840/t, which strengthens demand from importers.

As a result of another blockage of the grain corridor, the purchase prices for sunflower oil in Ukraine during the week fell by $30-50/t to $690-700/t for deliveries to the Danube ports, which remain the main channels of oil export against the background of the lack of demand from the EU.

Before the new season, Ukraine can export another 300-500 thousand tons of sunflower oil, which can be done in a month if the Black Sea ports are stable, and in the case of deliveries only through the Danube port, it will take 2-3 months.