March 19, 2007

Indian trading company to import 28,000 tonnes crude soyoil

An India-based trading company has contracted a deal to import 28,000 tonnes crude soybean oil at US$675-678 a tonne, cost, insurance and freight for delivery in May or June, a senior edible oils industry official said Friday (Mar 16).

"The cargo will be delivered in the last week of May or first week of June on India's west coast," the official told Dow Jones Newswires.

He did not give the port of origin of the cargo but said the deal that was struck in the last two days indicates a renewed interest in import of soyoil that has been reduced to a trickle in the past few months due to cheaper availability of locally produced soyoil and imported palm oil.

According to industry estimates, India imported only 162,990 tonnes crude soybean oil between November and February, down from 359,912 tonnes in the year-earlier period. Imports of crude soybean oil in February are estimated at a paltry 18,000 tonnes, down from 92,704 tonnes a year earlier.

India's crude soyoil imports reached a record high of 2 million tonnes in the marketing year to October 2005 but subsequently declined on unfavourable market conditions including a cut in the Indian government's customs tariff on palm oils.