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India's palm oil imports are projected to fall about 21% to 7.4 million tons in the crop year starting November, the lowest since 2010-11. The drop follows restaurant and hotel closures under the nationwide lockdown, which cut food-service demand for the oil.
Benchmark palm oil prices have already fallen about 35% this year.
India is the world's largest vegetable oil buyer, so a sharp cut in its purchases removes a major source of demand and adds downward pressure on palm oil prices.
ajot.comBloombergMay 5, 2020After 158 past bearish trade events, Palm Oil moved a median +0.0% over 5 sessions (51% higher; middle half -1.3% to +0.8%), and -1.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
India, the top buyer, is projected to cut palm oil imports to a nine-year low as food-service demand collapses, a bearish demand signal on 5 May.
