Vegetable oil buyers will likely switch some purchases back to palm oil as its discount is widening compared to other vegetable oils. One broker noted palm oil is $150 per MT cheaper than soyoil. Earlier this month, palm oil was $40 per MT cheaper. In March, palm oil was higher than soyoil and sunflower oil. Brokers explained refiners are switching to palm oil for May shipments. Crude palm oil was offered to India at $1,765 per MT for May shipment, compared to $1,930 for crude soybean oil and $2,100 for crude sunflower oil.
Start a $1 Pro Farmer Trial & Get 1-Month of Premium Market Analysis & Recommendations.
India will likely import more than 600,000 MT of palm oil in April, compared to 539,793 MT in March. Imports in May could be more than 650,000 MT. Bangladesh and Pakistan are also buying more palm oil for May shipments, one dealer said. If the Covid outbreak is contained within the next few weeks, China could also increase its palm oil purchases.
