India’s Vegetable Oil import up 26% on year in April

According to a latest update from Solvent Extractors’ Association of India (SEA), India’s import of vegetable oils during April 2024 is reported at 1,318,528 tons compared to 1,050,189 tons in April 2023, consisting 1,304,409 tons of edible oils and 14,119 tons of non-edible oils i.e. up by 26%. The overall import of vegetable oils during first six months of the oil year during November 23 to April 24 is reported at 7,148,643 tons compared to 8,110,381 tons during the same period of last year i.e. down by 12%.

India’s Oilmeals export slides 6% on year in April

SEA noted that India’s export of oilmeals for the month of April, 2024 were provisionally reported at 465,156 tons compared to 493,448 tons in April 2023 i.e. marginally down by 6%. During April 2024, South Korea imported 109,744 tons of oilmeals (compared to 86,231 tons); consisting of 90,238 tons of rapeseed meal, 15,970 tons of castorseed meal and 3,537 tons of soybean meal. Vietnam imported 18,365 tons of oilmeals (compared to 100,860 tons); consisting of 16,627 tons of rapeseed meal and 1,738 tons of soybean meal.

Thailand imported 40,582 tons of oilmeals (compared to 68,519 tons); consisting of 39,035 tons of rapeseed meal and 1,547 tons of soybean meal. Bangladesh sourcing rapeseed meal and soybean meal from India and imported 82,878 tons of oilmeals (compared to 107,408 tons), consisting of 66,926 tons of rapeseed meal and 15,953 tons of soybean meal. Iran has turned out to be largest importer of Soybean meal from India (including shipment via Dubai) and imported 81,240 tons of soybean meal.

Malaysia's Palm Oil stocks plummet to their lowest level in 10 months

Malaysia's Palm Oil stocks at the end of March plummeted to their lowest level in 10 months, following a surge in exports amid a modest rebound in production, according the industry regulator. The decline in Malaysia's Palm Oil stocks pushed up benchmark futures for CPO to a one-year high. According to data from the Malaysian Palm Oil Board (MPOB), Malaysia, the world's second-largest Palm Oil producer after Indonesia, witnessed a staggering 10.68% drop in Palm Oil stocks at the end of March, totaling nearly approx. 1.7 million metric tons, marking its lowest level since May. The MPOB report highlighted a notable about 10.57% increase in crude Palm Oil (CPO) production, reaching around 1.39 million tons, while Palm Oil exports surged by nearly of 28.61% to around 1.32 million tons during the same period.

FAO Vegetable Oil Price Index averages 127.8 points in May

The FAO Vegetable Oil Price Index averaged 127.8 points in May, down 3.1 points (2.4 percent) month-on-month, yet standing 7.7 percent above its year-earlier level. The index decrease was mostly driven by lower palm oil quotations, more than offsetting higher soy, rapeseed and sunflower oil prices. International palm oil prices declined for the second consecutive month in May, as outputs across major producing countries in Southeast Asia seasonally increased amid a protracted weak global import demand. By contrast, world soyoil prices rebounded in May, broadly underpinned by increasing demand from the biofuel sector, particularly in Brazil. Meanwhile, sunflower and rapeseed oil prices also firmed, mainly reflecting, respectively, seasonally diminishing export availabilities in the Black Sea region and the likelihood of tightening supplies in the upcoming 2024/25 season.

According to International Grains Council or IGC, after surging in the prior year, global soyabean trade is projected to edge lower in 2023/24, albeit remaining significantly above average, including sizeable deliveries to key buyers. Global output is predicted to reach a high of 414m t in 2024/25, including heavy outturns in the US, Brazil and Argentina, while uplift in demand for soya products is set to underpin record processing and total use. Trade is anticipated to resume an uptrend, expanding by 2% y/y.

Outlook:

The near term price action in local markets will largely be mixed as peak supply season of rabi oilseeds gets over. The wholesale price index (WPI) for Rapeseed had drifted lower in first quarter of 2024 as weigh of supplies capped the commodity. Mustard seed production is likely to touch an all-time high of 12 million tonnes in the 2023-24 season in view of a record sown area of 10 million hectares, according to SEA. WPI for Rapeseed fell to ten month low of 162.20 in March 2024, marking a drop of nearly 8% compared to March 2023. The index edged up slightly on a monthly basis in April still remained down 5% on year ago basis.