Palm oil imports declined 40% in December from the previous month to 503,000 metric tonnes, the lowest since March 2023, dealers said. India, the biggest consumer of vegetable oils globally, saw the steepest fall in its palm oil consumption. Higher prices to a 2-1/2-year high led to increased order for the cheaper soyoil by refiners.
Lowered buying could weigh benchmark Malaysian palm oil rates but support U.S. soyoil futures. The soyoil importation rose by 3% from its prior month's level to reach 420,000 MT in December, the highest level recorded in the past four months, while the importation of sunflower oil declined by 22% to 265,000 MT.
India sources edible oil through imported refinery oils, which dropped 25 percent in December to 1.19 million tons, the first time it has dipped in three months. Palm and sunflower oil imports recorded the largest decline. GGN Research’s managing partner Rajesh believes that many Indian purchasers have switched from palm oil to soyoil as the latter went high by the premium of palm oil in November and December.
Palm oil, usually sold at a lower price than soyoil and sunflower oil, has experienced a price increase due to declining inventories, pushing its prices higher than competing oils, which have more plentiful supplies. Sandeep Bajoria, CEO of Sunvin Group, observed that the over $100 per ton premium on palm oil is expected to lower imports in January as well.
The Solvent Extractors' Association of India is anticipated to release information on December imports by mid-January.
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