Low palm oil export rates continue to pressure soybean and sunflower oil quotes

Malaysia's palm oil inventories were expected to reach a 19-month low in December, supporting prices, but a sharp decrease in exports in January has led to increased pressure. Exports were down by 15.5-23.7% between January 1 and 15.. India, the world's largest importer of vegetable oils, may reduce palm oil imports to a five-year low in January due to negative refining margins and a switch to cheaper soybean oil. As a result, April palm oil futures on the Bursa Malaysia exchange fell by 4.5%.

Traders had expected Malaysia’s palm oil inventories to fall to a 19-month low in December to support prices, but a sharp slowdown in exports in January has added to the pressure on prices. Malaysia cut its palm oil exports by 15.5-23.7% between January 1 and 15, according to surveyors Intertek Testing Services and AmSpec Agri Malaysia. India, the world’s largest importer of vegetable oils, could cut palm oil imports to a five-year low in January amid negative refining margins as buyers switch to cheaper soybean oil amid high palm oil prices. According to dealers, crude palm oil (CPO) for January delivery is currently being offered in India at $1,155/t CIF (including freight and insurance), while February and March deliveries are being offered at $1,140/t and $1,100/t, respectively. In the first half of January, palm oil imports to India amounted to 110,000 tons, and in total for the month it will reach 340-370,000 tons, which will be the lowest figure since March 2022, when ...