Palm oil imports by India climbed to a five-month high in June as traders and refiners in the world’s biggest buyer increased purchases to replenish stockpiles.
Inbound shipments increased 45.5% from a month earlier to 562,932 tons, the Solvent Extractors’ Association of India said in an emailed statement on Tuesday. Purchases were 686,886 tons in June 2019.
- A surge in palm oil purchases by India will likely reduce stockpiles in top producers Indonesia and Malaysia and support benchmark prices that have fallen more than 20% so far this year.
- Indian purchases may climb further as palm oil reserves in the country have gradually fallen in the first half of the year on lower domestic demand due to the coronavirus pandemic and weaker imports.
- Total stockpiles declined to 915,000 tones at the start of May from 1.23 million a month earlier, according to the association.
Imports of soft oils in June were higher than palm oil purchases.