Source: APKinform (Ukraine)
Indian importers have canceled the purchase of 70,000 tons of crude palm oil (CPO) with delivery in the period from March to June due to a sharp increase in the price of this oil in Malaysia (by more than 11% in four weeks) and negative refining margins in India, according to Reuters.
In addition, the strong supply of soybean oil to India between February and March, which is priced slightly lower than palm oil, has contributed to some refiners canceling palm oil purchases to switch to soybean oil.
Market operators note that India’s cancelation of orders may limit the rise in Malaysian palm oil prices and support soybean oil quotations. Asian buyers have traditionally relied on palm oil imports because of their low cost and fast delivery.
It is noted that CPO offer prices in India are voiced at $1210 per tonne CIF for delivery in March, compared to about $1120-1130 per tonne a month ago.
Recall that in January, India’s palm oil imports fell 45% month-over-month to 275,200 tons, the lowest in nearly 14 years.