Palm oil imports at peak in 6 months, sunflower oil at record high

Palm oil imports rose to a six-month high in June on strong demand from refiners for the upcoming festivals, while sunflower oil imports hit a record high, a major trade body said on Thursday.

Higher purchases of palm oil by India, the world’s biggest importer of vegetable oils, could help major producers Indonesia and Malaysia reduce stocks and support benchmark Malaysian palm oil futures.

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Solvent Extractors Association of India (SEA) said in a statement that palm oil imports rose nearly 3 percent in June from the previous month to 786,134 metric tonnes, the highest since December.

A New Delhi-based dealer of a global trading house said palm oil has been trading at a discount to soybean oil and sunflower oil for several weeks, encouraging refiners to increase purchases for the upcoming festivals.

SEA said crude palm oil imports for June delivery to India were offered at around $954 per metric tonne including cost, insurance and freight (CIF), while soy oil and sunflower oil were offered at $1,049 and $1,049 respectively. It was made around $1,065 per tonne.

SEA said soy-oil imports fell nearly 15 percent to 275,700 tons in June and sunflower oil imports rose 13.4% to a record 465,647 tons, with total vegetable oil imports rising 1.4 percent to 1.55 million tons.

Sunflower oil typically commands a premium of more than $100 a tonne compared to soybean oil and palm oil, but since it was trading at a discount in April, Indian refiners placed orders for June shipments, the dealer said.

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India mainly buys palm oil from Indonesia, Malaysia and Thailand, while it imports soya oil and sunflower oil from Argentina, Brazil, Russia and Ukraine.

Sunflower oil imports will fall in July as it is no longer at a discount to rival oils, but palm oil imports will rise to 850,000 tonnes due to the recent improvement in prices, a Mumbai trader said.