India, the world's largest importer of vegetable oil, is expected to increase its soybean oil purchases in 2024, while palm oil imports will likely decrease, a key trader said on Monday.
Sandeep Bajoria, CEO of the Sunvin Group, a vegetable oil consultancy and brokerage firm, stated that India's soybean oil imports will rise to 4.3 million tons in the 2023/24 marketing year, compared to 3.5 million tons in 2022/23.
On the other hand, palm oil imports will be lower, totaling 9.2 million tons in 2023/24, down from 10 million tons in 2022/23, Bajoria said on the sidelines of the Palm and Lauric Oils Price Outlook Conference 2024.
Negative refining margins for palm oil compared to positive margins for soybean oil have led to a shift from palm to soybean oil in recent weeks, according to traders. India's reduced palm oil purchases could keep stocks high in major producers Indonesia and Malaysia, weighing on benchmark futures.
Bajoria also mentioned that India's sunflower oil imports will remain around 3 million tons in the current marketing year, keeping the country's total vegetable oil imports at 16.5 million tons in 2023/24, unchanged from the previous year.
"Overall, domestic vegetable oil production will be around 10 million tons and imports will be 16.5 million tons. Therefore, total consumption will be about 26.5 million tons."
India's palm oil imports in January fell more than 12% from the previous month, hitting a three-month low of 782,983 tons.
India primarily buys palm oil from Indonesia, Malaysia, and Thailand, and soybean and sunflower oil from Argentina, Brazil, Russia, and Ukraine.
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