31 October 2013 05:30 [Source: ICIS news]
SINGAPORE (ICIS)--Palm oil freight rates to India are expected to soften after the Hindu festival of Diwali in early November because of weak demand for the vegetable oil, Asia-based shipping sources said on Thursday.
“At this point, palm oil freight rates is going lower and lower. We thought Diwali will push up prices but this has not been the case. Expect it to soften further after Diwali,” a southeast Asia-based source said.
Palm oil freight rates from southeast Asia to India for a 10,000 tonne vessel were quoted at low $30s/tonne (€21.90/tonne) for most parts of the week, shipping sources said.
However, continued weak demand may push freights below $30/tonne, they added.
Indian end-users are holding on to high inventories of the commodity and are in no hurry to purchase new cargoes in the coming weeks.
“No urgency from end-users. They are comfortable with their inventory levels,” a Singapore-based shipbroker said.
India largely imports palm oil from Indonesia and Malaysia, two of the world’s largest producers of the vegetable oil.
($1 = €0.73)
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