Indian buyers are reducing palm oil purchases for December and January shipments due to escalating prices and negative margins for refiners after extensive imports in recent months. The move, driven by attempts to clear accumulated stocks, may lead to elevated palm oil inventories in key producers Indonesia and Malaysia. The surge in imports from July to September lifted India's vegetable oil stocks to 3.3 million tons on November 1, compared to 2.46 million tons a year ago. Buyers are cautious about sustainability in price hikes, prompting restrained new import orders. The slowdown may impact imports in December and January, with concerns about rising supplies of local soyoil and cottonseed oil further influencing the market. Palm oil imports in November are expected to decline to 770,000 metric tons from 1.1 million tons a year ago.

SOURCE: GOOGLE