Price trends in the Indian vegetable oil market

According to the SEA Association, prices for imported sunflower oil on a CIF Mumbai basis have increased compared to last week, month and even year. Recall that the CIF Mumbai price includes the FOB Black Sea price and the cost of freight, insurance and port charges.

 

Soybean oil rose the most among all imported oils on a CIF Mumbai basis for the week and month, although the annual price increase is quite significant. Palm oil prices rose moderately for the week and significantly for the month, reflecting a recovery in demand after a decline in February.

 

In the domestic Indian market, refined sunflower oil prices have increased moderately in the past week and significantly more in the past month and year. Refined soybean oil prices are also higher than in the past week, month and year. Refined rapeseed oil has increased the most in the past week among other refined oils. Prices for domestic expeller-pressed sunflower oil are showing moderate growth.

 

The spread between sunflower and palm oil prices on a CIF Mumbai basis has narrowed after reaching record levels, but still encourages buyers to partially substitute sunflower oil for palm oil. The wide spread between soybean and sunflower oil prices reduces the competitiveness of the latter. The small spread between palm and soybean oil prices indicates strong competition between them in the Indian market.

 

Due to the stable demand for refined sunflower oil, its prices on the local market are higher than those for refined soybean and rapeseed oils. The difference between domestic prices for refined sunflower oil and import prices on CIF encourages importers and processors to increase supplies.

 

Sunflower prices remained stable during the month, although they increased moderately over the year. Soybean prices also increased slightly for the week and month, but are significantly higher than last year due to high demand from processors. Rapeseed and mustard prices accelerated weekly growth and are higher than last month and year. Peanut prices fell during the month, but are significantly higher than last year.

 

Castor oil prices fell during the week and remain lower than last year due to reduced global demand. Soybean meal fell during the month, although it still remains significantly more expensive than last year. Rapeseed meal also fell during the month, although prices are slightly higher than last year.

 

In February, sunflower oil imports decreased significantly compared to January due to the record spread between sunflower and palm oil, the share of which in total oil imports in February reached a record level.