04/12/2007 (Reuters), New Delhi - A drop in global prices of soy and palm oils will have little impact on import volumes in December by India's private trade, but more of the purchases will be of palm, traders said on Tuesday.

"Edible oil imports in December and January should be at more or less the same levels as in previous years as our winter oilseeds crushing is good, but the import ratio will change," said Sandeep Bajoria, a leading Mumbai-based oils trader.

India, the world's leading edible oil buyer, imports palm oils from Malaysia and Indonesia and soy oils from South America.

Traders said palm oil prices have dropped by $20-$30 per tonne over the last two weeks while soy oil has eased $15.

"The prices have dropped because crude has lost steam," said B.V. Mehta, executive director of the Solvent Extractors' Association of India. "December and January imports should be the same as last year but the majority of oils will be palm."

Malaysian crude palm futures fell to a one-month low on Monday as long liquidation pressures tied to weaker crude and soyoil gripped the market.

The benchmark February contract on the Bursa Malaysia Derivatives Exchange on Monday fell as much as 45 ringgit, or 1.5 percent, to 2,885 ringgit ($861), a level not seen since Nov 2. But it rebounded on Tuesday following gains in U.S crude.

Palm oil, up nearly 47 percent this year, has been increasingly tracking moves in crude oil markets as it is a feedstock for biodiesel, a popular "greener" alternative.

Soyoil futures at the Chicago Board of Trade were brought off their lows on Monday due to the rebound in the crude oil market. In the last one year soy oil has risen 60 percent, industry officials said.

Bajoria said December edible oil imports were estimated at around 290,000 tonnes, comprising 250,000 tonnes of palm, mainly crude palm oil and 40,000 tonnes of soy and other soft oils.

In January too the trend would be similar with purchases of 250,000 tonnes of palm and 50,000 tonnes of soy oils, he said.

"The ratio of import basket is turning out to be 85 percent palm and just 15 percent of soy compared to the normal ratio of 70 and 30 percent of the two oils," said Bajoria.

Govindbhai Patel, a top oil trader in Gujarat, estimated edible oil imports in December at 350,000 tonnes, with most of it in the form of palm oils as traders had stayed away from soy because of high prices.

"Usually soy oil imports in November and December are lower because of the crushing of the local soybean crop but not so low," said Patel.

Patel said imports in January could be in the range of 400,000 tonnes with about 250,000-300,000 tonnes of palm oils and the remainder as soy oils.

Traders estimate India's edible oil imports in the new oil year that began in November at around 4.8 million tonnes, up from about 4.6 million tonnes in the year ago period.