India secured a record quantity of edible oils for delivery in July, as refiners boosted their acquisitions of palm oil and soy oil, attracted by favorable prices and in anticipation of an expected rise in import duties. This significant increase in palm oil acquisitions by India, the world's largest importer of vegetable oils, is anticipated to aid in diminishing stockpiles in producing nations such as Indonesia and Malaysia, thereby bolstering benchmark prices.
For the ongoing marketing year that started in November 2023, India's average edible oil imports have reached 1.2 million tons. As per a source, 1.45 million tons of edible oils, including 850,000 tons of palm oil, have been offloaded at various Indian ports.
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It is anticipated that palm oil imports for July will see a 45% surge from the previous month, reaching 1.14 million tons. This uptick was encouraged by a price correction in May and June, which rendered palm oil more cost-effective compared to its competitors.
During this period, the refining margins in India remained robust, leading refiners to secure orders for July shipments, according to a source familiar with the matter. Dealers noted that the price gap between palm oil and soy oil expanded significantly in May, surpassing $100 per ton, up from less than $10 in April.
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