Soybean and sunflower oils displace palm oil in the Indian market

According to S&P Global Platts forecasts, India in January will increase imports of vegetable oils compared to December by 6% to 1.3 million tons. at the same time, for the third consecutive month, the share of soft oils – soy and sunflower in total imports is growing, while palm oil is decreasing.

Demand for palm oil falls as prices for it approach the levels of prices for soybean and sunflower oils. If in my 2020/21 the share of palm oil accounted for 63% of total imports of vegetable oils, in November it decreased to 50%, and in January - to 42%, while soy and sunflower oil increased to 58%.

SEA's official January import report will be released on February 15. Usually, Indian importers buy soft oils if they have a difference with the price of palm oil in the range of 8 80-100/ton.

Compared to December, imports of soft oils increased in January from 650 to 756,177 thousand tons, in particular crude soybean oil - by 7% to 422,658 thousand tons, crude sunflower oil or CSFO – by 29% to 333,219 thousand tons. while imports of palm oil decreased to 544,772 thousand tons, of which the share of crude oil or SRO was 373,705 thousand tons, and refined and deodorized olein (RBD) – 125,306 thousand tons.

In the period of January 22-28, the average cost of importing a ton of crude palm oil SRO was $ 1505/t, crude soybean refined oil CDSBO - $ 1506/t, crude sunflower oil CSFO - $ 1470/t, whereas in January 2021, the cost of importing SRO amounted to $ 1047/t, CDSBO - $ 1121/t, CSFO – $ 1319/t.

Palm oil prices rose to record levels in January amid flooding in Malaysia and export restrictions from Indonesia, which together will produce 85% of the world's palm oil.

As of January 31, the physical market price of SRO on FOB Indonesia rose to 1 1,395/ton, while soybean oil on FOB Paranagua cost 1 1,418.01/ton, and sunflower oil on FOB Black Sea Ukraine -. 1,400/ton.

If prices for the main types of vegetable oils (soy, sunflower, rapeseed) have almost doubled over the past 18 months, then palm oil has risen in price much more. This level of prices in the Federal Antimonopoly Service is explained by the high demand for palm oil and a decrease in the number of offers.