MARKET DEVELOPMENT
India Is Seen in Need of Record Vegetable Oil Imports
India Is Seen in Need of Record Vegetable Oil Imports
08/10/2014 (Bloomberg) - India, the world’s largest vegetable oil importer, will need record inbound shipments in the 2014-15 marketing year with “poor crush economics” limiting domestic soybean oil production, Oil World said.
Imports of eight vegetable oils including soybean oil and rapeseed oil will climb 4.3 percent to 12.2 million metric tons, 3.5 percent higher than estimated in September, according to the Hamburg-based research company’s latest weekly report. The soybean crop estimate was cut 1.9 percent to 10.3 million tons and 10 million tons is possible without more rain, it said.
Soybean processors who crush the beans into meal and vegetable oil are not competitive on meal in the export market, leaving crushings below potential, Oil World said. Soybean oil output of 1.48 million tons in the 2014-15 season started this month is down from 1.6 million tons two years ago, it said. China will be second to India in vegetable oil imports in the current year, according to Oil World.
“The Indian vegetable oil market is approaching a season with manifold challenges and uncertainties,” Oil World said. “Above all, there is concern that domestic oil output will be trimmed not only by relatively low oilseed production but also by poor crush economics.”
The eight vegetable oils are from soybeans, palms, sunflowers, cotton, rapeseed, peanuts, palm kernels and coconut. Consumption will rise 5 percent to 18.4 million tons, meaning imports will serve 67 percent of needs, it said.
Peanut oil production for India is forecast to slump 47 percent to 311,000 tons and sunflower oil output will decline 9.7 percent due to lower plantings, Oil World said.
Imports of eight vegetable oils including soybean oil and rapeseed oil will climb 4.3 percent to 12.2 million metric tons, 3.5 percent higher than estimated in September, according to the Hamburg-based research company’s latest weekly report. The soybean crop estimate was cut 1.9 percent to 10.3 million tons and 10 million tons is possible without more rain, it said.
Soybean processors who crush the beans into meal and vegetable oil are not competitive on meal in the export market, leaving crushings below potential, Oil World said. Soybean oil output of 1.48 million tons in the 2014-15 season started this month is down from 1.6 million tons two years ago, it said. China will be second to India in vegetable oil imports in the current year, according to Oil World.
“The Indian vegetable oil market is approaching a season with manifold challenges and uncertainties,” Oil World said. “Above all, there is concern that domestic oil output will be trimmed not only by relatively low oilseed production but also by poor crush economics.”
The eight vegetable oils are from soybeans, palms, sunflowers, cotton, rapeseed, peanuts, palm kernels and coconut. Consumption will rise 5 percent to 18.4 million tons, meaning imports will serve 67 percent of needs, it said.
Peanut oil production for India is forecast to slump 47 percent to 311,000 tons and sunflower oil output will decline 9.7 percent due to lower plantings, Oil World said.