Patchy Indian monsoon set to cheer palm traders 3,000 miles away

Published 2021년 8월 25일

Tridge summary

India's economic recovery is under threat due to weak monsoon rains, which are expected to damage domestic soybean and peanut crops, potentially leading to increased imports of edible oils, primarily palm oil, from Indonesia and Malaysia. The country's dependence on these imports reaches up to 70%. The private weather forecaster Skymet Weather Services Pvt. has reported that India is likely to miss its normal monsoon forecast due to irregular rainfall patterns. This could result in lower production of oilseeds, impacting food prices and agricultural areas. Soybean production is projected to decrease, and peanut output may also see a decline.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

(Aug 25): Faltering monsoon rains in India are posing a risk to domestic soybean and peanut crops, and may prompt the world’s biggest palm oil importer to boost purchases from top growers Indonesia and Malaysia. The world’s second-most populous nation, where eating fried food is a national tradition, depends on overseas suppliers for as much as 70% of its edible oil needs. Concerns are growing that deficient monsoon rains this year could hurt crops, raise food prices, threaten a nascent economic recovery and boost imports of farm goods. Inbound shipments of palm oil will be higher in the year starting on Nov 1 than an estimated 8 million tons in 2020-21, said G.G. Patel, a veteran trader and managing partner of GGN Research. He didn’t provide an estimate for the next year. India mainly imports palm oil from Indonesia and Malaysia, which are about 2,400 miles and 3,000 miles away respectively from New Delhi. Palm oil prices rose as much as 2% in Kuala Lumpur on Wednesday, taking ...

Source: Theedgemarkets