Edible oil import to fall on low prices.

New Delhi: India’s edible oil imports in April probably fell 12% from a year ago, pressured by low domestic prices and a fall in demand after summer arrived early, a Reuters survey showed.

Traders and analysts said high temperatures, two to three degrees above normal, during the pre-monsoon phase slowed consumption demand, which usually declines in summer. Most parts of India saw record high temperatures in March, usually a month of gradual transition from winter to summer, while a severe heat wave had gripped many parts in April.

Higher temperature slowed demand, said RK Singhal, a trade analyst based in Delhi.

He said poor off-take had cut demand for imported cooking oil in the domestic market, leaving higher stockpiles at ports.

The survey showed April palm oil imports fell an annual 29%, while soyaoil imports rose five times as global prices eased on bright soybean prospects in Latin America, mainly Argentina.

Imports of palm oil have been declining since November, while soyaoil imports have been rising.

The negative trend would reverse only when palm oil’s discount to soyaoil rises, said Srinivas Sirigeri, managing director of Mumbai-based trading firm Shakti Enterprises.

An average of forecasts by eight traders stood at 578,750 tonne for April, down 12.2% from a year ago, and 5.5% lower than imports in March. The survey showed average estimated port stocks at the end of April rose by 41%.

Source : Financial Express