India’s September Palm Oil Imports Hit Four-Month Low as Soybean Oil Surges

Traders said India’s palm oil imports fell in September to their lowest level in four months as refiners moved to replace palm oil with soybean oil.

This shift in import patterns could weigh on benchmark Malaysian palm oil futures, while supporting US soybean oil futures.

Key September Import Figures

• Palm oil: imports fell by 15.9% month on month to 833,000 tonnes, the lowest level since May.
• Soybean oil: imports rose by 37.3% to 505,000 tonnes, the highest level since July 2022.
• Sunflower oil: imports rose by 5.8% to 272,000 tonnes, an eight-month high.

As a result of lower palm oil imports, India’s total vegetable oil imports in September are estimated to have declined slightly by 0.7% from the previous month to 1.61 million tonnes.

Traders said the figures exclude duty-free shipments arriving from Nepal through land borders.

Comfortable Stocks and Future Outlook

Sandeep Bajoria, CEO of Mumbai-based Sunvin Group, said India’s palm oil stocks are at a comfortable level following large imports between June and August ahead of the festival season, when consumption of sweets and fried foods typically rises.

Rajesh Patel, managing partner at edible oil trader GGN Research, said India imported 11,000 tonnes of soybean oil in September, the first such shipment in a very long time.

A trader at a global trading company expects India’s palm oil imports to continue declining in October to around 600,000 tonnes, while soybean oil imports are likely to exceed 450,000 tonnes.

India imports palm oil mainly from Indonesia and Malaysia, while soybean oil is sourced from Argentina, Brazil, Russia, and Ukraine.

Source: Reuters