May 28, 2004

China Bound Soyoil To Be Diverted To India

Indian edible oil prices aren't expected to fall sharply over the next several weeks despite the likelihood that soyoil shipments from South America meant for China will be diverted to India, a senior industry official said on Thursday.
 
"The shipments of soyoil are expected to arrive in India only by July and since the country will need to import edible oils then, these shipments may be absorbed, without leading to fall in local prices," said Rajesh Agrawala, chairman of Soybean Processors' Association of India.
 
Agrawala said Indian traders haven't contracted significant amounts of edible oil imports next month despite the slowing of crushing of rapeseed and soybeans. Demand of edible oils will be quite healthy in July, he said.
 
The Economic Times in India reported Wednesday that four vessels carrying 120,000 metric tons of South American soyoil meant for China, may be diverted to Indian shores in July.
 
The newspaper said the vessels may be diverted to India, as China is seeking to cut its soyoil imports due to low domestic prices of beans.