Palm Oil’s Scorching Rally About to Burn Its Top Customer
- High prices seen hurting Indian palm oil purchases this winter
- Imports could plunge 15% y/y in three months from December
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Palm oil’s meteoric rally in the past few weeks will almost certainly come with a cost -- shrinking sales to its largest customer.
India, the world’s biggest buyer, will shift some purchases to other edible oils this winter after palm’s surge of about 30% from last month’s low. Palm’s discount to top rival soybean oil has contracted to the smallest in almost a decade, reducing its traditional appeal as a cheaper vegetable oil.