India's sunflower oil, soy oil imports up as palm oil imports fall

India's sunflower oil imports surge, reducing palm oil purchases, impacting Malaysian palm oil futures and Black Sea region inventories.

India's sunflower oil imports rose by 51% in March from the previous month to reach the second highest level on record, as lower prices led refiners to increase their purchases while reducing buying of rival palm oil, five dealers told Reuters.

Lower palm oil purchases by India, the world's biggest importer of vegetable oils, could cap the rally in benchmark Malaysian palm oil futures that are trading near their highest in a year. Higher sunflower oil purchases will help to reduce sunflower oil inventories in the Black Sea region.

March sunflower oil imports surged 51% month-on-month to 448,000 metric tons, the second highest on record, according to estimates from dealers. Palm oil imports fell 3.3% to 481,000 tons, the lowest since May 2023, they said.

"Sunflower oil imports are rising in place of palm oil. Production issues are keeping palm oil prices firm, prompting buyers to switch to sunflower oil," Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage, said.

Crude palm oil (CPO) imports are offered at about $1,020 a metric ton, including cost, insurance and freight (CIF), in India for May delivery, while soy oil and sunflower oil are offered around $1,000 and $960 a ton, respectively, dealers said.

Palm oil usually trades at a discount to rival soy oil and sunflower oil, but falling stocks have lifted its prices above rival oils, whose supplies are abundant.

Sunflower oil prices are very competitive, which would ensure higher imports even during April and May, Rajesh Patel, managing partner at edible oil trader and broker GGN Research, said.