In July, India increased the import of edible oil to a record 1.76 million tons, as processors actively built up stocks ahead of festivals due to supply uncertainties from the Black Sea region, as well as increased discounts on palm oil compared to soybean and sunflower oils.

The surge in edible oil imports by the world’s largest buyer will lead to a reduction in palm oil stocks in Malaysia and Indonesia, support prices for base products and soybean oil, and also contribute to a decrease in reserves in Black Sea countries that produce sunflower oil.

According to data from the Solvent Extractors’ Association of India (SEA), in the 2021/22 marketing year, the country imported an average of 1.17 million tons of edible oils per month, including 1.3 million tons in June. Dealers estimate that in July, palm oil imports increased from 683,133 tons to a seven-month high of 1.09 million tons, sunflower oil imports increased by 73% to a six-month high of 330,000 tons, while soybean oil imports decreased by 22% to 340,000 tons. Experts note that amid the conflict in Ukraine, Indian importers are maintaining high stock levels to avoid potential shortages. SEA may publish its own data on vegetable oil imports for July in mid-August.

The decrease in soybean oil imports in July is attributed to delays in vessel unloading at the Kandla port.

India primarily buys palm oil from Indonesia, Malaysia, and Thailand, while soybean and sunflower oils are imported from Argentina, Brazil, Ukraine, and Russia.

October futures for palm oil on the Bursa Malaysia exchange rose by 45 ringgit per ton, or 1.16%, to 3,917 ringgit per ton, or 862.59 US dollars per ton.

On the Dalian exchange, soybean oil futures increased by 2.16%, and palm oil futures increased by 2.35%, while on the Chicago exchange, soybean oil prices decreased by 0.11%.

Prices for sunflower oil with buyer’s delivery remained at $965 per ton, and demand is gradually increasing amid a decrease in olive oil production in the EU, despite an increase in supply of new rapeseed oil.