News

India slows palm oil imports amid rising prices and negative margins

RBD Palm Oil
India
Market & Price Trends
Published Nov 24, 2023

Tridge summary

Indian buyers are reducing their palm oil purchases for December and January due to increasing prices and negative margins. This decrease in imports could result in higher palm oil inventories in Indonesia and Malaysia, putting pressure on benchmark futures. The rise in prices and increased supplies of local soybean and cottonseed oil have also contributed to the decline in import requirements.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Cutting purchases by the world's largest importer of vegetable oils could lead to higher palm oil inventories at key producers Indonesia and Malaysia, putting pressure on benchmark futures, which are trading near their highest level in two months. "Traders are trying to clear inventories accumulated at ports due to aggressive imports in recent months," Rajesh Patel, managing partner at edible oil trader and broker GGN Research, told Reuters. "Currently there is no import parity. Old imported stocks are offered at lower prices compared to the prices of new stocks." The market price of crude palm oil for December shipments to the West Coast excluding import taxes is Rs 77,500 per tonne, while already imported oil is being offered at Rs 76,500, traders said. Increased imports between July and September pushed India's vegetable oil inventories to 3.3 million tonnes as of November 1 from 2.46 million tonnes a year earlier, according to the SEA Association. Buyers are concerned that the ...
Source: Oilworld
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