Indian edible oil refiners are curtailing palm oil imports for May and June as most states have imposed curbs on hotels and restaurants to arrest rising coronavirus infections, denting institutional demand, industry officials said.
Lower imports by India, the world's biggest buyer of the edible oil, could limit a rally in benchmark Malaysian palm oil futures, which hit their highest level since 2008 on Thursday.
"Palm oil demand from hotels, restaurants and other institutional buyers has been falling rapidly due to lockdowns," said Govindbhai Patel, chief of trading firm G.G. Patel & Nikhil Research Co.
Almost all states have closed hotels and restaurants for in-dinning as India reported a record 412,262 new COVID-19 cases on Thursday and a record 3,980 daily death toll, with the second wave of infections swamping the health system and spreading from cities into the vast countryside.