India May Pass China as Top Vegetable Oil Buyer

BEIJING: India may overtake China as the world’s top importer of

vegetable oil.

Growth in the two nations’ consumption will drive

global demand for palm and soybean oil, according to Cofco Ltd, China’s

biggest grain trader.

Colder temperatures in China may curb the

country’s consumption of the tropical palm oil this year, Deng Ruihong,

deputy general manager of research at the state-owned company, said in

slides to be delivered here today .

Palm oil is harder to

transport in colder climates.

Prices of crude oil at about US$80 per barrel (US$1 = RM3.19) also

support prices of vegetable oil, Deng said in his presentation, to be

given at a conference organised by China Cereals and Oils Business Net.

Malaysia crude palm oil futures closed broadly higher on Friday. The

benchmark June contract jumped 3.8 per cent to RM2,594 a tonne.

India, the world’s top cooking oil importer, mainly buys palm oils

from Indonesia, Malaysia, and small quantity of soyaoil from Brazil and

Argentina.

In 2009, India bought a record 8.4 million tonnes of

cooking oil and reclaimed the top importer slot from China after six

years. – Bloomberg

Source : Business Times

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