India's Palm Oil Imports Hit Five-Year Low Amid Rising Soyoil Popularity

India's palm oil imports are expected to fall to a five-year low in January due to negative refining margins and preference for cheaper soyoil. Lower imports could impact global palm oil prices while supporting soyoil futures in the U.S. Industry reports indicate a significant drop compared to typical monthly imports.

India's palm oil imports are anticipated to drop to their lowest level in five years this January, primarily due to negative refining margins which have made soyoil a more attractive option for buyers. This shift could potentially influence global palm oil prices while boosting soyoil futures in the United States.

According to government and industry insiders, only about 110,000 metric tons of palm oil were cleared in the first half of January. Typically, India imports more than 750,000 tons of palm oil each month, yet January's total is projected to be around 370,000 metric tons, a stark decrease.

This downturn in palm oil imports is driven by continuous losses in refining margins, with refiners incurring over $30 per ton for January shipments. Buyers have thus turned towards soyoil, traditionally more expensive than palm oil, as it is now being offered at a discount. Industry experts predict that the trend will persist unless palm oil becomes competitively priced.

(With inputs from agencies.)