InfoSAWIT, KUALA LUMPUR – More expensive crude palm oil (CPO) would be restricted by the abundant soyoil and sunflower oil stocks. The two are ‘soft oils’ which are cheaper than palm oil for the first time for the past one year.

CPO price at Malaysia Derivatives Exchange increased almost 5% in the early of 2024 after got decreased 11% in the previous year. This made palm oil demand a little bit sluggish because of the abundant soyoil production in South America.

Soyoil as the main vegetable oil, is mostly sold more expensive than CPO. But the increasing soyoil harvest up to the highest record in South America made it cheaper, more affordable for the buyers that escalated its demands. It means, the decreasing CPO production, while the increasing ‘soft oil’ production, made price trade difference that restricted to the potential increasing CPO price.

CEO Glentech Group, Vipin Gupta thought the increasing ‘soft oil’ price would tend to alienate CPO buyers which in the end would potentially escalate CPO price. Gupta also told CPO imports were offered about US$ 930 per metric ton in India for March 2024 delivery, while soyoil and sunflower oil were offered about US$ 915 and US$ 910 per ton.

As InfoSAWIT quoted from moneycontrol.com, India, as one biggest vegetable oil importer country, has shifted to get oil purchase preference.

CEO Patanjali Foods Ltd, Sanjeev Asthana told, many buyers in India reduced CPO imports but escalated soyoil delivery. CPO imports in India decreased to the lowest numbers in the past three months while soyoil imports could significantly increase for the next couple of months.

Managing Partner of GGN Research, Rajesh Patel told that India normally purchased palm oil from India, Malaysia, and Thailand while soyoil and sunflower oil were imported from Argentina, Brazil, Russia, and Ukraine.

In Europe, CPO price got more expensive for buyers because more expensive transportation. This made CPO got more expensive up to US$ 100 per ton than soyoil, canola oil, and sunflower oil. (T2)