Source: Ukragroconsult (Ukraine)
The recent price adjustment has once again made palm oil more affordable than its competitor, soybean oil, encouraging buyers to boost their purchases. Since the start of the year, Malaysian palm oil futures have dropped by nearly 10%. Traders report that crude palm oil is currently priced at US$1,050 per tonne for December delivery. Specifically, crude palm oil is offered at $1,050 per tonne on a CIF basis for delivery to India, whereas crude soybean oil is priced higher at $1,100 per tonne. In response to these pricing conditions, India has begun to increase its palm oil imports.
“Previously, Indians were reluctant to buy palm oil due to its high cost. Now that palm oil is cheaper than soybean oil, processors are placing new orders,” explained Sandeep Bajoria, CEO of Sunvin Group.
From December through March, India imported 1.57 million tons of palm oil, with shipments projected to exceed 500,000 tons in May and 600,000 tons in June.