Palm oil will be the most expensive Vegoil as a Ukrainian war stop Sunoil power source

Buyers rush to secure a replacement for sunflower oil shipments from the top export Black Sea region destroyed by the Russian invasion of Ukraine Mumbai palm oil is among the four major cooking oils for the first time Is the most expensive.

When a record premium of palm oil on top of the rival oil is already squeezing the sensitive Asia and Africa of the consumer to the reeling price from spiral fuel and food costs, it is possible to force them to migrate to reduce consumption and rival soybean oil , dealers said.

In India, while the coarse oil is $ 1,865, crude palm oil (CPO), the cost, insurance, including freight (CIF) has been provided at about 1,925 dollars per ton.

Crude oil rapeseed oil, which traders were not offered crude sunflower oil, was offered for about $ 1,900 as the port was closed due to the crisis in Ukraine. palm oil, which jumped to historical premium than the India of soybean oil, causes a change in buying patterns

The Black Sea accounts for 60% of the world’s sunflower oil production and 76% of its exports. Ukrainian ports will remain closed until the end of the invasion.

“Asian and European refiners, in order to replace the sun oil, by nearly has increased the purchase of palm oil for one month of shipment. This purchase, up to the palm oil is unreasonable price levels the rise was “, says dealers worldwide trading company based in Mumbai.

“They also have the option to buy soybean oil, but the rapid shipment of soybean oil is limited and it takes much longer to land in Asia than palm oil,” he says. I did.

Soybean production in Argentina, Brazil and Paraguay is expected to decline due to dry weather.

Price-sensitive Asian buyers have traditionally relied on palm oil for cost and quick shipping times because it is low, but now they are over $ 50 per ton premium on soybean and NOF. The Kuala Lumpur-based cooking oil dealer, who is paying, said.

The price premium for palm oil, however, is temporary, and buyers will be able to fade in in the coming weeks as a transition to soybean oil for April shipments, dealers said.

According to Indian refiners, most of the increasing demand for palm oil is being met by Malaysia as Indonesia restricts exports.

“With the rapid increase of demand, Malaysia’s stock has been depleted rapidly. It is the biggest beneficiary of the current geopolitical situation,” he said.

By Rajendra Jadhav