Indian Refiners Cancel Palm Oil Orders Due to Price Surge

21-Feb-2025 11:20 AM

Indian Refiners Cancel Palm Oil Orders Due to Price Surge
★ Indian refiners have canceled orders for 70,000 metric tons of crude palm oil (CPO) scheduled for delivery between March and June due to rising Malaysian palm oil prices and unprofitable refining margins in India.
★ Malaysian palm oil futures have surged over 11% in the past four weeks, making imports costlier.
★ On Thursday alone, 40,000 tons of orders were canceled.
★ The CPO price for March delivery has reached $1,210 per ton (CIF), compared to $1,120–$1,130 per ton last month.
★ India's palm oil imports in January dropped by 45% to 275,241 metric tons, the lowest in 14 years, as refiners shifted to cheaper soybean oil from Argentina and Brazil.
★ Soybean oil is now cheaper than palm oil, making refiners prefer it.
★ Speculations about higher import duties on palm oil to support local oilseed farmers have also driven refiners to cancel orders and secure profits.
★ This could slow the rise in Malaysian palm oil prices.
★ Soybean oil prices may increase as Indian refiners shift toward it.
★ Indonesia and Malaysia may face a decline in palm oil exports to India.