Palm oil: India’s palm oil imports remain muted after Indonesia lifts export ban

Five dealers told Reuters on Friday that India’s palm oil imports could not increase in June despite Indonesia’s decision to lift the ban on foreign shipments as rising palm oil prices make rival soybeans more attractive to refiners.

The world’s largest buyer of palm oil, lower than normal imports from India, could affect Malaysian palm oil prices, but lift soybean shipments from Argentina, Brazil and the United States, which support Chicago soybean prices.

“Indians are not in a hurry to buy as prices have risen due to Indonesia’s export bans,” said Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil brokerage and consulting firm.

Indonesia will re-impose an internal sales requirement on palm oil, its government said Friday, a day after the world’s leading edible oil producer lifted its export ban.

Swale premium on palm oil for Indian buyers has been reduced to just 70 70 per tonne, dealers said.

Crude soybean oil is being sold at around $ 1,750 per tonne in India, including cost, insurance and freight (CIF) for June shipments, compared to $ 1,820 per tonne. One month ago, palm oil was traded at a discount of more than 150 150 per tonne of soybeans.

In May, India’s palm oil imports could fall to about 500,000 tonnes from 572,508 tonnes a month earlier, dealers said.

“In June, imports will increase as Indonesia allows exports, but there will not be a big jump. The price of dates is not very attractive,” said a dealer at a Mumbai-based global trading firm.

India’s palm oil imports could rise to 550,000 tonnes in June, dealers said. India imports an average of 600,000 tons of palm oil per month.

The limited availability of palm oil and sunflower oil has prompted refiners to increase purchases of soybeans from Argentina, Brazil and the United States for faster shipments, says a New Delhi-based dealer in a global trade body.

India’s soybean imports in May could rise to 450,000 tonnes from 273,151 tonnes in April, dealers said.

In June, soybean imports could be around 480,000 tonnes, they said.

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