September 23, 2014

For the year ending October 31, palm oil shipments to India may reach 9 million tons, outpacing a July estimate of 8 million tons by India’s largest importer Ruchi Soya Industries Ltd, and breaking the previous record of 8.3 million tons imported in 2012/13 according to the Solvent Extractor’s Association of India.  Prices for both palm and soybean oil fell to their lowest in five years as forecasts continue for record global production and oversupply, as palm oil prices are expected to continue to decline toward cost of production.  This slump has prompted Malaysia, the world’s second biggest palm oil producer after Indonesia to eliminate export taxes on crude palm oil for the two months through October to reduce inventories.  India’s total vegetable oil imports, including those for industrial use may climb to a record 13 million tons this year as demand exceeds domestic production forcing the country to buy 50% of its yearly demand.  India’s oilseed sowing fell to 17.68 million hectares (43.69 million acres) from 19.25 million hectares last year and soybean production is forecast to decline to between 9.5 million tons and 10.5 million tons from an original July estimate of 11 million tons because of lower acreage, inconsistent monsoon, and crop loss.

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