India's Shift to Soyoil Amid Palm Oil Price Surge

In December, India's palm oil imports fell by 41% from the previous month due to a price surge, prompting a switch to cheaper soyoil. This has impacted international markets, supporting U.S. soyoil futures while affecting Malaysian palm oil prices.

In a significant shift, India's palm oil imports in December plummeted by 41% from the previous month, marking a nine-month low. This decline came amidst soaring palm oil prices reaching a 2-1/2-year high, leading refiners to opt for more affordable soyoil, a top trade association reported.

The Solvent Extractors' Association of India (SEA) highlighted that December's palm oil imports fell to 500,175 metric tons, the smallest since March 2024. Meanwhile, soyoil imports rose by 3.2% to 420,651 tons, a peak in four months, while sunflower oil imports saw a significant decline of 22.3% to 264,836 tons.

This shift resulted in a 24.3% drop in India's total vegetable oil imports for December, reaching only 1.23 million tons, a low point for three months. Indian buyers are turning to South American soyoil as tightening Malaysian palm oil supplies push up prices, SEA indicated.

(With inputs from agencies.)