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India's palm oil imports fell to their lowest level since May, the Solvent Extractors' Association of India said on Wednesday, as refiners shifted towards cheaper soybean oil. Soybean oil shipments climbed to their highest level in three years.
Malaysian palm oil futures are expected to be pressured by the drop in imports from India, the world's biggest buyer of vegetable oils, while US soybean oil futures should benefit.
The industry trade body said India's palm oil imports fell 16.3% in September to 829,017 tonnes, the lowest since May.
By contrast, sunflower oil imports rose 6% to 272,386 tonnes, the highest since January.
According to the trade body, India's total edible oil imports fell 1% month-on-month in September, totalling 1.60 million tonnes.
India's palm oil imports in October are expected to fall to around 600,000 tonnes, while soybean oil imports are likely to exceed 450,000 tonnes, according to a Mumbai-based trader with a global trading house.
India mainly imports palm oil from Indonesia and Malaysia, while it sources sunflower oil and soybean oil from Argentina, Brazil and Ukraine.
Traders said India bought 300,000 tonnes of soybean oil from Argentina between 23 and 24 September, its largest-ever two-day purchase, taking advantage of Buenos Aires's decision to scrap export taxes on soybeans and other foodstuffs.
Demand for edible oils in India, particularly palm oil, typically rises during festival seasons due to increased consumption of sweets, fritters and other fried foods. Reporting by Anmol Choubey, Mumbai; editing by Himani Sarkar and Mrigank Dhaniwala.
Source: Reuters