Vegetable Oil Imports Up 45% On Year In May

The Solvent Extractors’ Association of India (SEA) stated that import of vegetable oils during May 2024 is reported at 1,529,804 tons compared to 1,058,263 tons in May 2023, consisting 1,498,043 tons of edible oils and 31,761 tons of non-edible oils i.e. up by 45%. The overall import of vegetable oils during first seven months of the oil year during Nov.’23 to May ’24 is reported at 8,678,447 tons compared to 9,168,644 tons during the same period of last year i.e. down by 5%. In Last one month, due to disruption in soybean oil supply from Argentina and Brazil, put the pressure on International and also on domestic prices lead by soybean oil.

India Oilmeal Exports Volume Slides 17% In Last Two Months

According to a latest data from Solvent Extractors’ Association of India (SEA), export of oilmeals for the month of May, 2024 is provisionally reported at 302,280 tons compared to 436,597 tons in May 2023 i.e. down by 31%. The overall export of oilmeals during April to May 2024 reported at 767,436 tons compared to 930,045 tons during the same period of last year i.e. down by 17%, mainly due to reduction in export of rapeseed meal and castorseed meal. During April-May 2024, South Korea imported 166,583 tons of oilmeals (compared to 189,705 tons); consisting of 132,874 tons of rapeseed meal, 27,101 tons of castorseed meal and 6,608 tons of soybean meal. Vietnam imported 32,699 tons of oilmeals (compared to 142,285 tons); consisting of 29,383 tons of rapeseed meal, 3,014 tons of soybean meal and 302 tons of groundnut meal. India usually export about 5 to 6 lakh tons of Deoiled Ricebran mainly to Vietnam, Thailand and other Asian countries and positioning as a reliable supplier in international market. The Government prohibited export of De-oiled Ricebran on 28th July of last year attributing it to the high fodder prices with De-oiled Ricebran being a major component till 31st March, 2024 and later extended up to 31st July, 2024.

FAO Vegetable Oil Prices Hit Highest Levels Since March 2023

The FAO Vegetable Oil Price Index averaged 131.8 points in June, up 4.0 points (3.1%) from May and marking the highest level since March 2023. The increase was driven by higher quotations across palm, soy and sunflower oils, while rapeseed oil prices remained virtually unchanged. After declining for two consecutive months, international palm oil prices rebounded in June, mainly underpinned by a reviving global import demand due to increased price competitiveness. Meanwhile, world soy and sunflower oil prices continued to rise, underpinned, respectively, by firm demand from the biofuel sector in the Americas and declining export availabilities in the Black Sea region. As regards rapeseed oil, international prices stayed practically stable in June, but markedly above their year-earlier levels amid a tightening global supply outlook for the 2024/25 season.

Outlook:

Edible oil prices will be tracking global cues along with trends in domestic oilseeds sowing in near term. In Argentina, soybean oil supply have been impacted due to worker’s strike hitting lower crushing, while recent flood in Brazil, dented soybean production and losses estimated at 2.71 million tons. Apart, being off season supply of sunflower oil from Russia and Ukraine has reduced. These recent developments have impacted the sentiments in the market and prices of both these oils went up during last one month however, palm oil which constitute major import, prices remained more or less stagnant both in international and domestic market. The in price of sun oil and soybean oil has pushed up the mustard seed price and lifted above MSP of Rs. 5650 to over Rs.6200 per quintal. This is likely to boost oilseeds acreage in the kharif season.