March saw 4.4 LMT of sunflower oil imports, the second-highest level ever

According to five dealers who spoke to Reuters, refiners increased their purchases of sunflower oil in March while decreasing their purchases of competitor palm oil, resulting in a 51% rise in imports of sunflower oil to India, which reached the second-highest level on record.

The world’s largest vegetable oil importer, India, may limit the increase in benchmark Malaysian palm oil futures, which are now trading close to their highest levels in a year, by reducing its imports of palm oil. Increased purchases of sunflower oil will contribute to a decrease in the area around the Black Sea in sunflower oil stocks.

Dealer estimates show that imports of sunflower oil increased by 51% month over month to 4,48,000 metric tons in March—the second-highest amount ever. According to them, imports of palm oil dropped 3.3% to 481,000 tonne, the lowest level since May 2023.

Sunvin Group CEO Sandeep Bajoria said that “production issues are keeping palm oil prices firm, prompting buyers to switch to sunflower oil.” Sunvin Group is a vegetable oil brokerage.

According to dealers, soyoil and sunflower oil are sold at approximately $1,000 and $960 per tonne, respectively, while crude palm oil imports are offered at about $1,020 a metric tonne, including cost, insurance, and freight, in India for May delivery. Typically, palm oil is traded at a premium to competitors’ oils like soy and sunflower, but declining inventories have driven up the price of palm oil relative to these numerous competitors.

The competitive pricing of sunflower oil will guarantee more imports even in April and May, according to Rajesh Patel, managing partner of edible oil trader and broker GGN Research. Imports of soybeans increased by 27% to 2,20,000 metric tons in March compared to the same month last year, but they were still significantly less than the 306,000 tonne monthly average during the previous marketing year that ended on October 31, according to dealers.