Massive palm oil rally is starting to turn away buyers in India
NEW DELHI (March 3): The blistering rally in palm oil is starting to turn away customers in India, the world’s biggest importer.
Buyers have canceled as much as 100,000 tons of planned palm oil purchases in the past seven days, according to Sandeep Bajoria, chief executive officer of Sunvin Group, a Mumbai-based trader and broker of vegetable oils.
“We can’t buy at these prices,” he said. “Demand destruction is happening.”
It’s what banks and even palm oil producers have warned about: sky-high prices will eventually result in consumers scaling back purchases or simply not be able to afford it anymore. The tropical oil rallied to a record high in Malaysia this week, joining a sweeping rally in commodities, as Russia’s invasion of Ukraine sparked fears that raw material supplies will fall short.
India is especially vulnerable to soaring vegetable oil prices as it relies on imports for 60% of its needs. It mainly buys palm oil from Indonesia and Malaysia, soybean oil from Argentina and Brazil, and sunflower oil from Ukraine and Russia, where shipments have been at risk of disruption.
As buyers are forced to cancel purchases, India is counting on existing stockpiles and an incoming domestic rapeseed crop to meet demand.
The South Asian nation has enough cooking oil inventories for about 45 days of use, Bajoria said. Data from the Solvent Extractors’ Association of India showed stockpiles at a four-month high at the start of February.
Domestic production of rapeseed sown in winter is set to be a record 11.46 million tons in 2021-22, according to the farm ministry. That could bring some much-needed relief to the high retail prices of edible oils in India.
India’s palm oil imports will slip to 500,000 tons in March from over 525,000 tons last month, Bajoria predicts. Purchases could fall sharply in April, he said.
High palm oil prices will bolster demand for soybean oil, with India set to increase imports to 400,000 tons in March from about 345,094 tons last month, Bajoria added.
http://www.theedgemarkets.com/article/massive-palm-oil-rally-starting-turn-away-buyers-india
Singapore Investment
-
-
-
-
-
The Art of Being Patient2 hours ago
-
-
-
-
-
-
-
SBAUG25 GX25080X is 2.29%8 hours ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Portfolio Summary for June 20252 days ago
-
-
-
Portfolio (June 30, 2025)3 days ago
-
Portfolio (June 30, 2025)3 days ago
-
-
Portfolio Update June 20253 days ago
-
-
-
-
-
Month of June 20253 days ago
-
June 2025 Updates3 days ago
-
-
-
-
-
-
-
Batisht crazy!5 days ago
-
-
Will SORA crash to 1 per cent?6 days ago
-
-
Hello world!1 week ago
-
-
Cut back some exposure1 week ago
-
-
-
-
-
8 tips for house moving1 week ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
May 2025 Portfolio4 weeks ago
-
-
-
Thakral - Gem life deal finally coming?5 weeks ago
-
-
-
-
-
Clarity1 month ago
-
The Trump Tariffs1 month ago
-
Selling HRnet and Fiverr1 month ago
-
-
-
-
Ignore the noise and be calm2 months ago
-
-
-
-
FAQ on Quantitative Investing Part 22 months ago
-
-
-
-
Crossing the 300k Mark [in a volatile period]2 months ago
-
-
-
-
-
-
-
-
-
ETF vs Mutual Fund: Which is Better?5 months ago
-
-
-
-
-
-
Arigato Everyone! A Decade of Blogging!6 months ago
-
Top 10 Highlights of 20246 months ago
-
-
-
Union Square Residences8 months ago
-
-
-
STI ETF9 months ago
-
-
-
Unibet Casino Bonus Codes 20249 months ago
-
-
-
-
The Stigma against Early Retirement (FIRE)11 months ago
-
Monthly IBKR Update – June 202411 months ago
-
-
-
-
-
-
-
-
-
Feb 2024 Expenditure1 year ago
-
-
-
-
-
-
-
Monthly Summary of November 20231 year ago
-
Migration of website1 year ago
-
-
-
-
-
-
Hello SP Group, I'm Back!2 years ago
-
-
-
A New Light2 years ago
-
-
-
-
-
2022 Thoughts, Hello 2023!2 years ago
-
Series of Defaults for Maple Finance2 years ago
-
Takeaways from “Sea Change”2 years ago
-
Greed is Coming Back2 years ago
-
-
-
-
-
-
-
-
What is Overemployment3 years ago
-
Terra Hill Condo (former Flynn Park)3 years ago
-
Alibaba VS Tencent: The Battle Royale3 years ago
-
-
-
-
-
-
-
-
-
-
-
-
-